Does Your Company Need to Report Beneficial Ownership Information?
February 13, 2024
Due to a rule that went into effect Jan. 1, many companies are now required to report information to the U.S. government about the individuals who ultimately own or control the company.
Covered companies will have to report the information to the Financial Crimes Enforcement Network (FinCEN). This will be a free filing that companies can complete themselves.
Do You Need to Report?
Your company may need to report information about its beneficial owners if it 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; or
- A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
There are 23 types of entities that are exempt from the beneficial ownership information reporting requirements. FinCEN's Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether your company qualifies for an exemption.
Insurance companies are one of the reporting company exemptions. The rule provides this explanation about an exemption for a “state licensed insurance producer”:
- (xiii) State-licensed insurance producer. Any entity that:
- (A) Is an insurance producer that is authorized by a State and subject to supervision by the insurance commissioner or a similar official or agency of a State; and
- (B) Has an operating presence at a physical office within the United States.
How Do You Report?
Reporting companies will have to report beneficial ownership information electronically through FinCEN's website.
When Do You Report?
- If your company was created or registered before Jan. 1, 2024, you will have until Jan. 1, 2025, to report BOI.
- If your company is created or registered on or after Jan. 1, 2024, you must report BOI within 90 days of notice of creation or registration.
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
For more information, visit FinCEN's website, view FinCEN's Frequently Asked Questions (FAQs) or contact FinCEN.
Alert
FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled "Important Compliance Notice" and asks the recipient to click on a URL or to scan a QR code. Those emails or letters are fraudulent. FinCEN does not send unsolicited requests. FinCen says to not respond to these fraudulent messages, or click on any links or scan any QR codes within them.
Contact ALTA at 202-296-3671 or [email protected].