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The deadline for the U.S. Beneficial Information Registry is fast approaching
Business owners of all shapes, sizes and industries are now required to complete the U.S. Beneficial Ownership Information Registry by January 1, 2025. The U.S. Treasury Department is leading this initiative, but it was created by the bipartisan Corporate Transparency Act. an effort to curb illegal financial transactions within US entities.
Here are the hard and fast facts:
WHO: any company doing business in the US
What: Requires entities doing business in the US to report information about persons who own or control them.
Where: free online filing at http://www.fincen.gove/boi
When: Existing companies have until January 1, 2025; new businesses must apply within 90 days of incorporation or registration
Completing the online form only takes a few minutes because only a few details are requested for each beneficial owner: name, date of birth, address and an ID number from a government-issued ID. This includes a U.S. driver’s license, U.S. passport, or identification document issued by any state, including a U.S. territory or possession, a local government, or an Indian tribe.) If none of these forms of identification exist, a foreign passport can also be used. However, all forms of identification must be up to date.
The company will indicate its name and address in the register. For entities incorporated on or before January 1, 2024, registration also requires information about the individuals who incorporated the company. These individuals are known as ‘corporate applicants’.
Failure to register or providing false information may result in civil and criminal penalties. This may include, but is not limited to, fines of $500 per day of non-compliance and possible jail time.
Larger companies with more than twenty full-time employees and more than five million annual turnover do not need to register. Regulated entities such as banks, insurance companies and listed entities are also exempt. FinCEN recommends that you work with an accountant, attorney or business advisor to ensure your company is compliant with the registry.
A few warnings against fraudulent phishing:
Registration is free, so anyone who offers to complete your file for a fee should be considered fraudulent. Emails requesting sensitive information related to registration should also be considered fraudulent, even if they appear to be from FinCEN or other agencies. There is likely misinformation circulating about possible exemptions or changing deadlines. All information should be taken directly from FinCEN and any other conflicting information should be considered fraudulent.
FinCEN does not request reports, fees or sensitive information via email. Report any suspicious activity to your local Better Business Bureau and the Federal Trade Commission.
For more information, see:
http://www.fincen.gov/boi
https://www.bbb.org/article/business/31051-bbb-business-tip-understanding-the-corporate-transparency-act
https://www.bbb.org/article/business/31051-bbb-business-tip-understanding-the-corporate-transparency-act
https://www.bbb.org/article/business/31051-bbb-business-tip-understanding-the-corporate-transparency-act
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