If you own or manage a business, it’s crucial to stay informed about upcoming regulatory changes. The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) is enforcing new Beneficial Ownership Information (BOI) requirements that will impact most U.S. businesses by the end of the year.
Who Needs to Comply?
These BOI requirements apply to most businesses, including LLCs, corporations, and similar entities operating in the United States. If you run a business that falls under this category, it’s important to understand your responsibilities and begin preparing for compliance.
What’s Required?
Businesses must disclose information about individuals who:
- Own 25% or more of the business
- Have substantial control over company decisions
This transparency is designed to help prevent fraud, money laundering, and other financial crimes by ensuring businesses are reporting who is in control of the company.
Key Deadline: December 31, 2024
The deadline for submitting the initial BOI reports is set for December 31, 2024. It’s important to meet this deadline to avoid penalties or fines for non-compliance.
How Can You Prepare?
To ensure your business is ready, we recommend the following steps:
- Review ownership and control structures of your company to identify individuals who need to be reported.
- Consult your CPA or financial advisor for guidance on how to gather and submit the required information.
- Visit your local GBT branch for assistance with understanding and fulfilling the BOI requirements.
For further details, you can also visit FinCEN’s BOI information page.
By staying proactive, you can ensure your business meets the new BOI requirements and remains compliant with FinCEN’s regulations. Don’t wait until the last minute—start preparing now!