New Business Transparency Rules: What You Need to Know About Beneficial Ownership Reporting in 2024
Michael S. Gawel, JD, CPA
Beneficial Ownership Information
In 2021 Congress passed the Corporate Transparency Act. As of 2024 the US Department of the Treasury’s Financial Crimes Enforcement Network (FINCEN) requires most domestic and foreign businesses that are registered to do business in the US to report their Beneficial Ownership Information (BOI) to more effectively reduce fraud and financial crimes.
If you own a business that is a LLC, S Corporation or a C Corporation you are required to file a BOI report on beneficial owners. A beneficial owner is anyone who has a stake of 25% or more in a legal entity or corporation or who has a significant management role.
Effective 1/1/2024 all newly formed businesses must file with 90 days of creation. All existing businesses must file by 12/31/2024. Any changes in business ownership require a new filing within 30 days.
Under FINCEN the US Department of the Treasury can release information to:
- Federal agencies
- State local and Tribal law enforcement
- Officials of the Department of the Treasury
- Foreign law enforcement agencies
- Financial institutions
FINCEN will do some outreach but it is your responsibility to file if you are required.
If you are unsure if you should file or need help in filing contact Michael S. Gawel, CPA.
(716)-622-0700
