Beneficial Ownership Reporting
What you need to know
Financial Crimes Enforcement Network's (FinCEN) new Beneficial Ownership Reporting requirements aim to combat financial crimes by making business ownership transparent. If you control or own more than 25% of a company, you’re likely a “beneficial owner” and must report your details to FinCEN. Learn more about the requirements at www.fincen.gov/boi.
Beginning on January 1, 2024, companies in the United States have the responsibility of reporting information about their company, including its beneficial owners, the individuals who own or control the company, and in some circumstances, its company applicants, the individuals who filed the documentation to create the reporting company.
Who needs to report
The definitions of a reporting company below determines if you must report BOI directly to FinCEN. If your company is:
- A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe;
- A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
When to report
FinCEN began accepting reports on January 1, 2024.
- If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.
- If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
- If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
How to report
Reporting companies will have to report beneficial ownership information electronically through FinCEN's website: Beneficial Ownership Information Reporting | FinCEN.gov. Reports will be accepted starting on January 1, 2024.
More Information
For more information on this reporting change, visit the FinCEN Website or contact First State Bank's Treasury Management Team at (920) 531-2845 or treasurymanagement@bankfirststate.com.
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 fail to file a required BOI report may be held accountable for that failure.
Reference Materials
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