If you own a business, you likely follow blogs and social media accounts that give you valuable information for your business.
Those blogs and social media accounts have likely started talkng about the new Beneficial Ownership Information report that all businesses have to file in 2024 under the Corporate Transparency Act.
And sadly, most of the videos I've seen are approaching the whole thing with scare tactics and fear mongering, which is probably good for selling their services.
But I have a different take...
But first, what is the Corporate Transparency Act, what is the Beneficial Ownership Information report, and why should you care about any of it?
The Corporate Transparency Act
Long story short, the federal government is trying to crack down on money laundering and financial crimes.
So they enacted the Corporate Transparency Act in 2021, which requires that all business report their beneficial owners to the Treasury Department's Financial Crimes Enforcement Network (FinCEN).
The Beneficial Ownerishp Information Report
Under the new Corporate Transparency Act, all businesses registered in the United States have to file a Beneficial Ownership Information Report starting in January 2024.
Companies formed before 2024 have 1 year to get it done.
Companies formed on or after January 1, 2024 have 30 days after they register to get it done.
The report asks for information about:
Your Company | name, DBAs, address, state where you're registered, EIN/tax ID
The Owners of Your Company | name, DOB, residential address, gov't issued ID number (passport, drivers license, etc.)
The Person Who Registered Your Company | name, DOB, residential address or company address (if a company registered your company), gov't issued ID number (passport, drivers license, etc.)
Some companies are exempt but it's a short and very specific list that doesn't apply to most small businesses.
(You can find more information on the FinCen website if you really want to nerd out)
Why Should You Care?
The penalty for late filing is $500/day up to $10,000.
Who Has to File It?
Every business that is registered to operate in the U.S. with the following exceptions:
The link above also has questionnaires to help you determine if you fall into one of the categories, so head on over if you're not sure.
Why It's Not a Big Deal
There's a lot of information circulating about violations of privacy and how the penalties are exorbitant and just lots of fear tactics around this topic.
Here's why I disagree:
I hate to break it to you, but some branch of the government already has all of your information - the Treasury Dept just want us to centralize it into a FinCen database for them to be able to more readily detect people doing shady sh*t.
Have a home address? You're on the property records, the USPS knows how to get mail to you. It's out there.
Have a driver's license? They have your DOB and address too. Same for a passport.
If you have successfully evaded any personal information on file with the government, then you probably don't have a registered LLC, so this new requirement doesn't apply to you.
And yes, the penalties are high, but (a) if you already have a business, you have a whole year to get it done, and (b) if you just get it done, it doesn't matter. There are penalties for not filing your taxes and basically everything else in business. Penalties are what they are, not a reason to worry.
How to Get It Done
Just CLICK HERE, and we will take care of it for you.
And that's it!
As always, reach out if you have any questions.