Leawood, Kan. – May 10, 2024: As of January 1, 2024, The Corporate Transparency Act may require many companies doing business in the United States to report beneficial ownership information (“BOI”) to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) about who ultimately owns or controls them. It received bipartisan support. Reporting companies report beneficial ownership information electronically through FinCEN’s website found at: www.fincen.gov/boi.
- Under the implementing regulations, companies required to report are called reporting companies (“Reporting Companies”). 31 CFR 1010.380(c)(1). Reporting Companies may have to obtain information from their beneficial owners and report that information to FinCEN. 31 CFR 1010.380. A company may need to report information about its beneficial owners if it is:
a corporation, a limited liability company, 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; or - a foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing. 31 CFR 1010.380(c)(1)(i)-(ii).
Several types of entities are exempt from beneficial ownership information reporting requirements, including publicly traded companies, nonprofits, and certain large operating companies. 31 CFR 1010.380(c)(2).
- Depending on when the Reporting Company was created, the reporting deadlines are as follows:
If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI. 31 CFR 1010.380(a)(1)(iii). - 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. 31 CFR 1010.380(a)(1)(i)(A) & 31 CFR 1010.380(a)(1)(ii)(A).
- 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. 31 CFR 1010.380(a)(1)(i)(B) & 31 CFR 1010.380(a)(1)(ii)(B).
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days. 31 CFR 1010.380(a)(2).
For reporting requirements and how to comply with the law you can visit FinCEN’s website or view the following FinCEN Information Session: How to Comply with New Beneficial Ownership Reporting Requirements. Additionally, if you have further questions or concerns, please seek advice from your professionals that help you comply with these types of requirements.
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