Understanding the New Beneficial Ownership Information Reporting Requirement

✨Starting January 1st, 2024, small businesses must report information about their organizations and beneficial owners to FinCEN to combat financial crimes.

📝The report includes the legal name, alternate name, address, jurisdiction, taxpayer identification number, and personal information of beneficial owners.

🚀Beneficial owners are individuals who own more than a 25% interest in the organization or exercise substantial control over the business.

💼The beneficial ownership information report (BOIR) needs to be filed only once, unless there are changes in the beneficial ownership information.

🕒The deadline to comply with the reporting requirement depends on the formation date of the organization.

Who needs to file a beneficial ownership information report?

—Most business organizations that are formed as corporations or LLCs, excluding not-for-profit organizations, need to file a beneficial ownership information report.

What information needs to be reported in the beneficial ownership information report?

—The report should include the legal name, alternate name, address, jurisdiction, taxpayer identification number of the organization, and personal information of beneficial owners.

What qualifies as a beneficial owner?

—Beneficial owners are individuals who own more than a 25% interest in the organization or have substantial control over the business.

How often does the beneficial ownership information report need to be filed?

—The report needs to be filed only once, unless there are changes in the beneficial ownership information.

What is the deadline to comply with the reporting requirement?

—The deadline depends on the formation date of the organization: before January 1st, 2024 (by January 1st, 2025), during 2024 (within 90 days of formation), or after January 1st, 2025 (within 30 days of formation).

00:00A new legal requirement has been created for small business owners to report information about their organizations and beneficial owners to FinCEN.

01:16Business organizations that were formed as corporations or LLCs, excluding not-for-profit organizations, need to file a beneficial ownership information report.

01:47Beneficial owners are individuals who own more than a 25% interest in the organization or have substantial control over the business.

03:01The beneficial ownership information report should include the legal name, alternate name, address, jurisdiction, taxpayer identification number of the organization, and personal information of beneficial owners.

03:55The deadline to comply with the reporting requirement depends on the formation date of the organization.