What You Need to Know: Beneficial Ownership Information

New beneficial ownership rules mandated by the Corporate Transparency Act (CTA) took effect on Jan. 1, 2024.

These rules require certain business owners to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. This federal law was designed to protect the U.S. financial system from threats, including money laundering, tax fraud, and other illegal financial activities.

Who is Impacted?

• LLC
• LLP
• Business Trust
• Any other foreign or domestic entity established through the filing with a secretary of state office of a state or tribal territory

Who is Exempt?

• Large operating company with 20+ employees and more than $5MM in gross receipts on the previous taxable year
• Tax-exempt entities, including 501©(3) nonprofits
• Insurance companies and state-licensed insurance producers
• Banks, credit unions, depository institution holding companies, broker, or dealers in securities
• An investment company or investment adviser
• Inactive entities
  
  

What Do You Need to Report?

• The legal name of your company
• The trade name of your company
• The address and principal place of your company
• The jurisdiction of the formation of your company
• The IRS taxpayer identification number and employer identification number (EIN) of your company
• Business Owner(s) Full legal name
• Business Owner(s) Date of birth
• Business Owner(s) Current residential address
• Business Owner(s) Image and details from U.S. Passport, state driver's license, identification document issued by a state, local government, or tribe, or foreign passport
  
  

When Do You Need to Report?

Existing reporting companies formed before Jan. 1, 2024, are required to report within one year from the effective date on Jan. 1, 2025. If your company was created after Jan. 1, 2024, you have 90 days from your business's formation date. If there is a change to any of the BOIs that you have reported, you have 30 days to submit an update.

How Do You Submit Your Report?

BOI can be reported through the FinCEN's website at www.fincen.gov/boi.

Helpful Links

• FinCEN Beneficial Ownership Information - https://www.fincen.gov/boi
• Reporting Requirements FAQs - https://www.fincen.gov/boi-faqs
• Key Filing Dates - https://www.fincen.gov/sites/default/files/shared/BOI_Reporting_Filing_Dates-Published03.24.23_508C.pdf
• Introduction to BOI Information Reporting Requirements Video - https://www.youtube.com/watch?v=nx48tPUbRK0
• Beneficial Ownership Information Reporting Rule Fact Sheet - https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet 

Consult your local Commercial Lender with any questions.

_{*All loans are subject to credit approval.}