Starting January 1, 2024, most small businesses will have to report information about their beneficial owners (individuals who own or control the business) to the Financial Crimes Enforcement Network (FinCEN).
Lots of business owners don't know what's going on with this, so here's some basic information and answers to questions:
Does my company need to file report? Probably. If your business is a Corporation or LLC formed in the United States, it probably needs to file a Beneficial Owner Information Report. There are exceptions, but exceptions apply to businesses that already have extensive reporting requirements.
What information is in the report? Private information. Information about the business itself, such as business address and employer identification number, and information about the owner(s), such as residential address, DOB, image of driver's license or passport.
Does the information reported become public? No.
Who files the report? Do it yourself or hire third party.
When is the report due? If your business was created before Jan. 1, 2024, due date is Jan. 1, 2025. If your business was created on or after Jan. 1, 2024, due date is 90 days after creation.
There's a ton of information, ability to file the report, small business guides, and FAQ's at: https://www.fincen.gov/
Beware of "spam" physical mail and emails that look like they are from the government, but are not. Many will ask for your private information to file on your behalf. If you hire a third party to file on your behalf, make sure they are trusted and are going to handle your data appropriately.
Business planning, formation, and compliance is a big part of estate planning. Many of our estate planning clients in Long Beach, Los Angeles County, and Orange County have Beneficial Owner Information Reporting requirements for their entities under the Corporate Transparency Act. Take some time to inform yourself and/or hire someone you trust to help you figure out how to stay compliant with the Corporate Transparency Act.