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Companies Now Required To Report Beneficial Owners

Corporate Transparency Act Creates a New Beneficial Ownership Information Reporting Requirement

We want to make sure you are aware of important changes impacting some companies this year. As you may know, Congress passed the Corporate Transparency Act in 2021 creating a new beneficial ownership information (BOI) reporting requirement for many companies.

Beginning on January 1, 2024, many companies in the United States will have to report identifying information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial owners are individuals who directly or indirectly own or control a company.

Companies that are required to comply must file their initial reports by the following deadlines:

  • A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
  • A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
  • A reporting company created or registered on or after January 2, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

Additional information, including a list of exempt entities, and reporting instructions can be found at www.fincen.gov/boi.

If you have any questions about this requirement, please feel free to reach out to one of our B. Riley Wealth Tax Services offices. Click here to find an office near you.

Be aware that there are penalties for not filing if this new requirement applies, and penalties for not updating the filing if or when reportable changes to the business or ownership take place.

If B. Riley Wealth Tax Services files on your behalf, we will provide you a copy of your filing, but will not be responsible for any penalties incurred if the information that you provide is inaccurate, or if you do not inform us of any changes to beneficial owners or business address on a timely basis.