Under the Corporate Transparency Act (CTA), as of January 2024 many corporations, limited liability companies, limited partnerships, and similar legal entities are now required to report ownership and management information to the U.S. Department of the Treasury. As described in our December 2023 newsletter relating to the new CTA requirements, the CTA is included in the Anti-Money Laundering Act of 2020, and the new reporting requirements are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud and other illicit activity.

Under the CTA, beneficial ownership information (BOI) reports must be filed electronically with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The BOI reports identify a company’s beneficial owners. Beneficial owners can include an individual who either directly or indirectly: (1) exercises “substantial control” over the entity or (2) owns or controls at least 25% of the entity’s ownership interests. An individual can exercise “substantial control” over an entity in a variety of different ways.

If you are an owner of a corporation, limited liability company, limited partnership or other legal entity, or participate in the management of any such entities, please ensure that your entity complies with the BOI reporting requirements. If you wish to file a BOI report directly with FinCEN, you may do so using this link.

For additional information, visit FinCEN’s BOI web page, which includes a link to frequently asked questions.