As of January 1, 2024, businesses across the U.S. have been faced with a new reporting requirement to curb illicit finance and protect our financial system’s integrity. The bipartisan Corporate Transparency Act (CTA), enacted in 2021, mandates that many companies doing business in the United States must report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).

This new reporting act aims to identify individuals to the federal government who own or control companies doing business in the United States. This act is designed to prevent misuse by bad actors and strengthen U.S. national security. FinCEN, a bureau under the U.S. Treasury Department, oversees this initiative.

What You Need to Know About Filing
The filing process is simple, secure, and free of charge. Most business owners or controlling parties will find it easy to handle, and filing may take less than 20 minutes for those with straightforward ownership. Those with a more complex ownership structure or those with multiple interests may require assistance. Notably, it’s a one-time filing requirement unless updates or corrections are needed later.

Key Deadlines for Filing:
Existing Companies: Companies created or registered before January 1, 2024, must file by January 1, 2025.

Newly Created Companies:

• For those starting in 2025, the filing deadline is shortened to 30 days for all newly registered companies.
• For those created or registered in 2024, the deadline is 90 days after the company’s creation or registration is effective.

Does Your Company Need to File?

If your business falls under the following criteria, it may need to file:

• It’s a corporation, LLC, or similar entity created in the U.S. by filing with a state or tribal office.
• It’s a foreign entity registered to do business in the U.S.

However, there are 23 types of exemptions. Companies exempt from BOI reporting include publicly traded companies that meet specific requirements, many nonprofits, and certain large operating entities. If you believe your company might be exempt, consult FinCEN’s Small Entity Compliance Guide, which includes checklists and qualifying criteria.

Filing Links and Resources
FinCEN provides several resources to make the filing process more accessible and transparent. Here are some key links and tools to assist you:

• File Directly: BOI Filing Portal
• General Information: FinCEN BOI Info
• Informational Brochure: Download Brochure
• Toolkit for Filing: Access Toolkit
• FAQ and Reference Materials: FAQ

Making Compliance Easy
Our Economic Empowerment Committee is here to support your efforts to comply with these new requirements. The Corporate Transparency Act is a positive step toward fostering a safe, accountable business environment. If you have questions or need further guidance, FinCEN’s resources are readily available, and we’re here to assist you in navigating this new landscape. Please don’t hesitate to reach out to hope@unitedcorpuschristi.org.