Information by Zahn Law Global LLP about a new U.S.A. regulatory requirement that may apply to your U.S. business.
In an attempt for the US government to combat illicit activities (i.e.: money laundering, terrorist financing, and other financial crimes), certain U.S.A. registered companies, partnerships, trusts, investment vehicles and similar entities are required to file a “Beneficial Ownership Information Report” (BOI Report) to the Financial Crimes Enforcement Network (FinCEN). Individuals exercising substantial decision-making “control” over a business (or ultimately owning it) must submit their personal information in the BOI Report, unless the business operation is one of the 23 exceptions. This new law called the Corporate Transparency Act (CTA) defines which entities must file with FinCEN, as well as who on behalf of the company is deemed a “Beneficial Owner”, and it can be a non-owner.
Although precise definitions are outlined in the CTA, they are voluminous and complicated. To be legally compliant, careful evaluation of each entity’s structure and operation must be conducted, and certain forms must be completed and submitted to the government.
As there are potential penalties or other legal consequences for failing to file timely with FinCEN, it is essential for each business to assess its structure to determine if filing is mandatory. Legal entities formed before January 1, 2024 must file a BOI Report before January 1, 2025. Legal entities formed after January 1, 2024 must file a BOI Report within 90 days of entities formation date.
To assist in navigating whether the CTA applies to a U.S.A. business, attached is information we have shared with clients and friends about the CTA reporting obligations. Whether a business opts to individually file the BOI Report or seek assistance, the following information will be needed:
- Driver’s License or Passport (JPEG)
- Birth Name
- Birth Date
- Residential Address
If you would like assistance with understanding more about the CTA or support with filing a BOI Report, please contact me at rkaptzanzahnlawglobal.com or 1-609-907-0604. We are glad to guide you through each step of the process, ensuring accuracy and adherence to the regulatory requirements (such as, a compliance assessment of your business structure and confirmation of the “Beneficial Owner”). I will gladly discuss the requirements with you as well as our Paralegals or Junior Associates can assist with preparing and filing the required documents.
