As we are approaching the end of 2024, we wanted to remind you that as of January 1, 2024, businesses were required to disclose beneficial ownership information (“BOI”) of people who own or control a company to the Financial Crimes Enforcement Network (FinCEN). This disclosure is to comply with the Corporate Transparency Act (“CTA”). The BOI reporting requirement is intended to help U.S. authorities combat money laundering, terrorism financing, and other illicit activities.
Domestic companies that are required to report include corporations, limited liability companies (“LLCs”) or any similar entity created by the filing with a secretary of state or any similar office. Under the CTA, foreign companies are required to report including corporations, LLCs or any similar entity that is formed under the law of a foreign country and registered to do business in any state by filing with a secretary of state or any similar office.
There are 23 exemptions to the CTA filing requirements including publicly traded companies, insurance companies, insurance producers, banks, among others. Many of these entities are exempt because they already disclose their BOI to regulatory agencies.
Many of you may qualify under the “Large Operating Company” exemption (Exemption #21) if all six (6) of the following criteria are met:
When Should You Report
Please note that this information is being provided to make you aware of the deadlines for this compliance requirement. We encourage you to consult with your own lawyer or professional adviser to determine whether you need to comply or are exempt from the CTA’s filing requirements.