Corporate Transparency Act - Beneficial Ownership Information

Effective January 1, 2024, the CTA requires domestic and foreign companies doing business in the United States to declare who their ultimate beneficial owners are to the Financial Crimes Enforcement Network (FinCEN). For the purposes of this declaration, a beneficial owner is any individual who, directly or indirectly, through any contract, agreement, understanding, relationship or otherwise, exercises substantial control over the reporting company or owns or controls at least 25% of the equity interests of that company.

Companies existing or registered before January 1, 2024 have until January 1, 2025 to submit initial reports, while companies created or registered on or after January 1, 2024 have 90 days after official registration or creation. The initial reports must contain:

Required information about the reporting company:

• Legal name, trade name and DBA.
• Address of the main place of business.
• State or Jurisdiction in which the company was first formed or registered.
• Tax identification number (EIN).

Required information on beneficial owners:

• Legal name.
• Date of birth.
• Current home address.
• Identification number recognized by the state or federal government (passport, driver's license, etc.).
• Photo of an identity document recognized at state or federal level.
  

Fine for non-delivery

• As specified in the Corporate Transparency Law, a person who willfully violates the BOI's reporting requirements may be subject to civil penalties of up to US$ 500 for each day the violation persists. That person may also be subject to criminal sanctions of up to two years in prison and a fine of up to US$ 10,000. Possible violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.

The declaration must be updated when the main information concerning the company changes, or if there is a change in the beneficial ownership (including changes in identifying information). Updates or corrections must be sent within 30 days of the change.

To find out more about Beneficial Ownership Information, see FINCEN's website BOI E-FILING (fincen.gov) or contact us now to help you fulfill this obligation for your company.