Report beneficial ownership information by year’s end

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Coordinate with your legal counsel to complete this filing

As the end of 2024 approaches, it’s crucial to remain aware of key compliance deadlines that impact your business operations. One such critical requirement is the filing of beneficial ownership reports. This communication serves as a friendly reminder of the important deadlines and the necessary actions to ensure your compliance if you own or lead one or more companies.

Beneficial Ownership Reporting Deadlines

  1. For Companies Formed Before January 1, 2024:
    • Deadline: December 31, 2024
    • Companies established before January 1, 2024, must file their beneficial ownership information by the end of this year. This deadline provides ample time to gather and report the required information, ensuring compliance with regulatory mandates.
  2. For Companies Formed on or After January 1, 2024:
    • Deadline: 90 days from the date of formation
  • If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective. Specifically, this 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

Importance of Compliance

The requirement to file beneficial ownership reports is a critical aspect of corporate transparency and regulatory compliance. Beneficial ownership information helps in preventing Logo of the Financial Crimes Enforcement Networkfinancial crimes such as money laundering and tax evasion.

FinCEN understands this is a new requirement. If you correct a mistake or omission within 90 days of the deadline for the original report, you may avoid being penalized, according to the FinCEN website. However, you could face civil and criminal penalties if you disregard your beneficial ownership information reporting obligations.

Coordination with Legal Counsel

Please note that Sol Schwartz & Associates does not file beneficial ownership reports on behalf of our clients. However, it is imperative to ensure that these filings are completed accurately and on time. We strongly advise coordinating with your legal counsel to handle these requirements. Legal professionals can offer the expertise needed to navigate the complexities of beneficial ownership reporting and ensure that your filings are in full compliance with the law.

To avoid last-minute rushes and potential non-compliance, we recommend initiating the process well in advance of the respective deadlines. Reach out to your legal counsel to discuss your beneficial ownership reporting obligations and begin gathering the necessary documentation.

Scam Alert

Finally, be alert for scams. FinCEN states that fraudsters may attempt to solicit information in a variety of ways, including:

  • Correspondence requesting payment. There is NO fee to file BOI directly with FinCEN. FinCEN does NOT send correspondence requesting payment to file BOI. Do not send money in response to any mailing that claims to be from FinCEN or another government agency.
  • Correspondence that asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. Do not click any suspicious links or attachments or scan any QR codes in emails, on websites, or in any unsolicited mailings.
  • Correspondence that references a “Form 4022,” or an “Important Compliance Notice.” This correspondence is fraudulent. FinCEN does not have a “Form 4022.” Do not send BOI to anyone by completing these forms.
  • Correspondence or other documents referencing a “US Business Regulations Dept.” This correspondence is fraudulent; there is no government entity by this name.

For additional information, refer to the FinCEN website.