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New Reporting Regulation

New Reporting Regulation

On September 30, 2022, the U.S.Department of the Treasury enacted the Beneficial Ownership Information Reporting Requirements which became effective January 1, 2024.  

As part of the Corporate Transparency Act, "these requirements are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on entities doing
business in the United States" (Federal Register. Vol 87, No. 189, September 30, 2022/Rules and Regulations).

We have compiled a quick FAQ list of the new regulations for small business owners.  Or, you may click the box below to read the reporting requirements in entirety.  

Am I a Reporting Company?

Am I a Reporting Company?

If you wonder if you are a “reporting company” you can look at Chapter 1 of the Small Entity Compliance guide to determine.  A basic rule of thumb is that if you are a corporation, LLC or entity formed with a secretary of state you most likely are required to file.  There are 23 company exemptions – mostly in the world of finance that is already highly-regulated such as banks, security related entities, insurance, accounting and more – that are not required to file.  Again, please check the Compliance Guide to confirm (page 4).

What is a beneficial owner?

What is a beneficial owner?

Once you have confirmed whether you have to report, the question becomes who is a beneficial owner. This answer is more straightforward. The definition is “any individual who directly or indirectly exercises substantial control over a company or owns/controls at least 25 percent of the ownership interests”. Think senior officers and decision makers as well as owners.  You can read more about this topic in Chapter 2 of the compliance guide.

When do I report?

When do I report?

Reporting Companies are only required to make an initial filing:

1) Businesses already in existence before January 1, 2024 have until the end of 2024.

2) Businesses created between Jan 1, 2024 and Jan 1, 2025 have 90 calendar days from the date the company receives actual notice that registration is effective. 

3) Businesses created after January 1, 2025 will have 30 calendar days.


At this time, there is no annual or quarterly filing requirement; however, reporting companies have 30 days to amend their report to include updated information. Additionally, reporting companies must correct inaccurate information previously filed within 30 days of discovering the error.

What happens if I don’t report in the required timeframe?

What happens if I don’t report in the required timeframe?

At this time, there is no annual or quarterly filing requirement; however, reporting companies have 30 days to amend their report to include updated information. Additionally, reporting companies must correct inaccurate information previously filed within 30 days of discovering the error.

The government is serious about this reporting.  According to the BOI Small Compliance Guide (v 1.1, page 15):

“The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.”

And finally, Where do I report?

And finally, Where do I report?

The Financial Crimes Enforcement Network (FinCen) website has a page for BOI e-filing.  The BOI E-Filing System is a pretty straightforward and easy site to navigate. 

You will need to following information during the process:

  • 1) Basic information for the Reporting Company including EIN.
  • 2) Company Applicant will need legal name, address and to upload an image of an identifying document such as driver’s license or passport.
    3) Each Beneficial Owner will need to provide a legal name, address and image of an identifying document such as driver’s license or passport.

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