ATTENTION BUSINESS OWNERS: New U.S. Filing Requirement for Companies – We Can Help You File Your Required Beneficial Ownership Information Report (BOIR)

Effective January 1, 2024, the Corporate Transparency Act (CTA) mandates that all domestic business entities (including corporations, LLCs, and LLPs) and foreign- registered businesses, unless exempt, must file a Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

The CTA aims to combat money laundering, terrorism financing, and other illicit financial activities. Willful noncompliance can result in severe civil penalties of $591 per day and criminal penalties of up to $10,000 and two years of imprisonment.

The CTA requires the reporting of beneficial ownership information (BOI) of companies operating in the United States. Beneficial owners are individuals who, directly or indirectly, own or control at least 25% of a company or have substantial control over the company.

For companies existing or registered before January 1, 2024, an initial BOIR must be filed by January 1, 2025. Companies newly created or registered in 2024 have only 90 days to file an initial BOIR after formation or registration. Companies newly created or registered in 2025 and thereafter will have only 30 days to file an initial BOIR after formation or registration.

Reporting is not annual. Once an initial BOIR is submitted, it must be updated within 30 days of a change (e.g., change of address or beneficial owner
information) or corrected within 30 days of knowing or having reason to know of an inaccuracy.

I encourage you to review the BOIR filing requirements and ensure timely compliance to avoid any penalties. To learn more about the CTA and BOIR filing obligations, please visit the FinCEN government website: https://www.fincen.gov/boi

For professional help with preparing and submitting the new BOIR filing requirement, you may contact me for further assistance.

Thank you for your attention to this important matter