New Federal Requirement for All LLCs & Corporations

Under the Corporate Transparency Act (CTA), certain limited liability companies (LLCs) and corporations are required to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This law took effect on January 1, 2024.

Businesses that were established before 2024 have until January 1, 2025, to file their initial Beneficial Ownership Information (BOI) report. For businesses formed in 2024, they must file a BOI report within 90 calendar days from the date of formation. Any business required to report that is formed on or after January 1, 2025, must submit a BOI report within 30 calendar days of its formation.

The following information is required for each beneficial owner who holds 25% or more of the business:

1. Legal Name of Business

2. Business EIN

3. Individual's Full Name

4. Date of Birth

5. Home Adress

6. Copy of Driver's License or Passport

Failure to file can lead to fines of up to $500 per day, up to $10,000. Additional information can be found at www.fincen.gov/boi

If you require any assistance with filing the Beneficial Owners Information Report, Contact Wiley and his accounting team at The BYB!