Guide: Beneficial Ownership Information Reporting for Mid-Sized Organizations
Our latest guide outlines how mid-sized businesses can maintain compliance with new CTA reporting requirements in five easy steps
The Corporate Transparency Act (CTA), which went into effect on January 1, 2024, was established to prevent illicit financial activities in the U.S., including terrorism financing, money laundering and fraud. To achieve this aim, the Act’s Reporting Rule requires qualifying organizations (referred to as “reporting companies”) to submit information about their beneficial owner(s) to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
The enactment of the CTA is significant: it will help to safeguard the U.S. financial system and national security. But it also puts increased strain on organizations that may already struggle to maintain regulatory and legal entity compliance.
To help reporting companies streamline beneficial ownership information (BOI) reporting, Filejet created a guide that breaks the process into five steps.
Beneficial Ownership Information Reporting Fundamentals
If your organization qualifies as a reporting company, you will need to file a beneficial ownership information report (BOIR) with FinCEN. If you aren’t sure whether your organization qualifies, use Filejet’s reporting company widget to find out.
Your organization may have a single beneficial owner, or multiple beneficial owners. Any individual who meets the FinCEN definition of “beneficial owner” will need to report identifying information about him or herself. If your organization was formed on or after January 1, 2024, you will also need to submit identifying information about your company applicant(s).
When you are ready to file your initial BOIR, visit FinCEN’s BOI E-Filing System. Your report should include thorough information about your company, beneficial owner(s) and company applicant(s) (if applicable). If your organization was formed prior to January 1, 2024, you have until January 1, 2025, to file. If your organization was formed after January 1, 2024, you have 90 days to file after receiving confirmation of registration.
Unfortunately, your reporting obligations do not end once your initial BOIR has been filed. Any time there is a change to your company or beneficial owner(s), you must file an updated report within 30 days.
Your Guide to Beneficial Ownership Information Reporting
For definitions and in-depth information about reporting requirements, read our latest guide, Beneficial Ownership Information Reporting for Mid-Sized Organizations. It is a concise, yet comprehensive, resource you can use to comply with the CTA.
In addition to helping you prepare your initial report, the guide will help you devise a strategy for maintaining long-term compliance with the new requirements. Because significant updates must be reported to FinCEN, it is critically important that you maintain organized, shareable, electronic records. One of the easiest ways to securely store that information – and maintain compliance with ease – is with a software solution like Filejet.
To learn more, download the guide.
