Small Businesses Must Report Beneficial Ownership Information

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has  published a “Small Entity Compliance Guide” to assist the small business community in complying with the beneficial ownership information (BOI) reporting rule.  Starting in 2024, many entities created in or registered to do business in the United States will be required to report information about their beneficial owners—the individuals who ultimately own or control a company—to FinCEN.  The Guide is intended to help businesses determine if they are required to report their beneficial ownership information to FinCEN.

Small Businesses Must Report Beneficial Ownership Information

The Guide is the latest in the ongoing efforts to educate the public about these important new requirements. This is also a critical step towards implementing the Corporate Transparency Act, which will help the Treasury Department and FinCEN expose bad actors abusing the U.S. financial system by hiding their identity behind opaque corporate structures.

The Guide, now available on FinCEN’s beneficial ownership information reporting webpage:

  •  Describes each of the BOI reporting rule’s provisions in simple, easy-to-read language;
  •  Answers key questions; and
  •  Provides interactive checklists, infographics, and other tools to assist businesses in complying with the BOI reporting rule.

The requirements become effective on January 1, 2024,  and companies will be able to begin reporting beneficial ownership information to FinCEN at that time.  FinCEN will provide additional guidance on how to submit beneficial ownership information soon.  Small businesses can continue to monitor FinCEN’s website for more information or subscribe to FinCEN updates.

Contact experienced Business Attorney Robert Friedman at  (585) 484-7432 for guidance and advice on properly starting your small business in New York, including LLCs and corporations.