You may have heard about the Beneficial Ownership Information Report that is a new report required of small business to the FinCEN which is part of the US Treasury.  The reporting is required as a result of the Corporate Transparency Act (CTA).  Let’s break it down into simplified terms and the key items to know.  While the final ruling has been posted things may still change and we’ll provide updated information as it is relevant.  But as of the time of this post here are the key highlights:

1. This rule is put in place to try and provide more information allowing the government to better identify business complex business structures that could be used to launder money.
2. There are hefty fines of $500/day up to $10,000 as well as potential jail time up to 2 years for non-compliance.
3. The form to complete the reporting has not been published yet and will become available Jan 1st, 2024.
4. For LLCs, Corporations and business entities formed PRIOR to 1/1/2024 the deadline to complete reporting is 1/1/25.
5. For LLCs, Corporations and business entities formed BETWEEN 1/1/2024 and 1/1/2025 will have 90 days from their registration/formation date to file.
6. For LLCs, Corporations and business entities formed AFTER 1/1/2025 will have 30 days from their registration/formation date to file.