FinCEN's Online Portal is Now Accepting Beneficial Ownership Reports

As we previously posted, the Beneficial Ownership Information Reporting Rule (BOI Rule) of the Financial Crimes Enforcement Network of the U.S. Treasury (FinCEN) was scheduled to take effect January 1, 2024. The BOI Rule requires companies such as corporations, limited liability companies, and other entities created to report information about their beneficial owners. FinCEN is now accepting BOI reports, which can be filed here.

As a reminder, entities formed or registered after January 1, 2024, must report their initial beneficial ownership information within 90 days of formation or registration. Entities formed or registered before January 1, 2024, have until January 1, 2025, to report their initial beneficial ownership information.

Beneficial owners under the BOI Rule are individuals or entities who (1) exercise substantial control over the company (such as C-Suite executives and important decision makers); or (2) own or control at least 25% of the company’s ownership interests.

The following information must be reported about each beneficial owner:

• Name;

• Date of birth;

• Complete current address;

• The unique identifying number and image of a U.S. passport, State issued driver’s license, foreign passport, or a state, local, or tribe-issued ID.

Entities formed after January 1, 2024, must also provide the same information for the “Company Applicant” (i.e., the individual who formed or registered the entity).

For many small closely-held entities, the reporting will usually be relatively straightforward. However, entities with more complex management or ownership structures will likely need to consult with counsel to identify all the individuals or entities qualifying as beneficial owners under the BOI Rule. Violations of the BOI Rule can carry a civil penalty of $500 per day and criminal penalties of up to $10,000 and two years in prison.

If you have questions about identifying your entity’s beneficial owners or BOI Rule reporting obligations, please schedule a complimentary consultation with us through our online scheduling system.

Information contained in this blog is provided for informational purposes and does not constitute legal advice or opinion. You should consult with an attorney regarding the specifics of your matter or legal issue.