NEW CORPORATE DISCLOSURE REQUIREMENTS STARTING SOON - Corporate Transparency Act
Eric Assouline, Esq.
Business and Bankruptcy Litigation Partner - Assouline & Berlowe, P.A., Miami, Florida | University of Miami School of La
FinCEN issued the Beneficial Ownership Information Reporting Requirements final rule on September 30, 2022.
The BOI reporting rule requires certain legal entities to report to FinCEN information about themselves as well as information about their beneficial owners; any change in submitted information must be submitted withing 30-days of the change.
Entities created or registered to do business on or after January 1, 2024, must also identify the individual who directly filed the document with specified governmental authorities that created the entity or registered it to do business, as well as the individual who was primarily responsible for directing or controlling such filing if more than one individual was involved in the filing of the document.
Further, the regulations describe who must file a report, what information must be provided, and when a report is due. Entities must certify that the report is true, correct, and complete.
On or after January 1, 2024, and not before, individuals or reporting companies will be able to request a FinCEN Identifier? by completing an electronic web form.?
The BOI Regulations implement? Section 6403 of the Corporate Transparency Act (CTA), enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021 (NDAA). That statutory provision, its implementing regulations, and their requirements are intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, while minimizing the burden on reporting entities.
?Under the Act, a “reporting company” is defined as a corporation, LLC, or other entity created by the filing of a document with a Secretary of State or similar office or formed under the law of a foreign country and registered to do business by the filing of a document with a Secretary of State or similar office.
However, a corporation, LLC, or other entity will not be considered a reporting company, and not required to file a report if it qualifies for one of the 23 exemptions (that already have substantial reporting requirements):
Tax Strategist || Wealth Management || Business Building || Fractional CFO || CPA Firm Running || Helping Financial Advisors Become the CPA Their Clients Deserve with Co-Sourced Tax Prep & Tax Strategy
1 年Will be fun is all I can say!
Curious Doer, Entrepreneur, Real Estate Investor, Angel Investor and Board Member looking to learn, connect and grow
1 年Thanks Eric. What are the implications for existing companies? Will there be anything needed to report? Also is the process start a company, fill out another form online identifying yourself and BO and then going about your business?