In 2021, Congress enacted the Corporate Transparency Act to ensure that bad actors do not benefit from
their unlawful gains. This law creates the Beneficial Ownership Information reporting requirement (BOI).
To comply, a reporting entity must register with the Financial Crimes Enforcement Network (FinCEN).
FinCEN began accepting registrations as of January 1, 2024.
Who must report?
Any corporation, LLC, or company created by filing paperwork with the Secretary of State unless a
qualified exemption exists. FinCEN has provided a helpful diagram to help determine eligibility.
There is a website set up for your convenience at www.FinCEN.gov/BOI
What if I do not file a report?
Well, FinCEN writes, “The willful failure to report complete or updated beneficial ownership information to
FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership
information may result in a civil or criminal penalties, including civil penalties of up to $500 for each
day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a
fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held
accountable for that failure.” ("BOI Small Entity Compliance Guide")
In conclusion, this new reporting requirement is for your benefit and required by law. If you have any
questions, please feel free to reach out to us and we will try to help you as best as we can.