In 2024, a stringent new filing requirement takes effect under the Corporate Transparency Act. The act compels all qualifying small businesses, including S-Corps and LLC, to disclose certain identifying information on “beneficial owners” to the Financial Crimes Enforcement Network (FinCEN).

Penalties for noncompliance are extremely steep, so we are strongly urging all small business owners to make CTA compliance a priority. Please read through the compliance guide on your own, or plan to work with an attorney to gather the required information, complete the BOI report, and then submit to FinCEN prior to the January 1, 2025 deadline.

Recently, we submitted the online application for a small business we own and found that the following twelve-step process takes just about ten minutes to complete:

  1. Start at: Beneficial Ownership Information Reporting | FinCEN.gov
  2. Click on the BOI E-Filing System at: BOI E-FILING (fincen.gov)
  3. Click on the link to Get Started
  4. Find the File Online BOIR box and click on Prepare & Submit BOIR button
  5. Click on Initial Report as Type of Filing
  6. Check the box next to: Request to receive FinCen ID, and enter the Company’s Legal Name
  7. Input the following information into the next few boxes:

    a. Select EIN
    b. Input the 9-digit EIN for the business with no dashes
    c. Enter United State of America in Box 10a
    d. Select the State of formation in Box 10b
    e. Enter the business address in box 11

  8. If your business was established before 1/1/2024, check Box 16 for an Existing reporting company, and click Next at the bottom of the screen to move Part III
  9. Starting at box 38, add the name, date of birth, and address for each person who controls more than 25% of ownership interests or exercises substantial control of the business
  10. Have a photo of each Beneficial Owner’s drivers license or passport ready to upload, then complete the information for Form of identification and issuing jurisdiction and upload the license or passport.
  11. Fill in your email address and name. Click Submit BOIR.
  12. Download the Transcript

CTA BASICS:

Effective January 1, 2024, the Corporate Transparency Act (CTA) establishes a new filing requirement for small business, including S-Corporations and LLCs. Qualifying businesses must file a Beneficial Owner Information (BOI) report with Financial Crimes Enforcement network (FinCEN), a bureau under the Department of Treasury. According to the bureau’s website, the expectation is that nearly all small businesses will meet the criteria and must file (Beneficial Ownership Information Reporting FAQS).