With the ever-changing landscape of regulations and compliance, it’s imperative for businesses to stay informed and ahead of the curve. Recent updates regarding the beneficial ownership information and its required reporting to FinCEN will go into effect soon and affect businesses of all sizes. Here’s what you need to know about how and when to act.
Should My Company Report Beneficial Ownership Information Now?
The short answer is “no.” As of the advisory issued on March 24, 2023, no entity must report any beneficial ownership information to FinCEN. Even if you were to make an attempt, FinCEN is not accepting any reports of this nature. But that will change come 2024.
Critical Deadlines for Reporting Beneficial Ownership Information
- For Established Companies: If your company was created or registered to conduct business before January 1, 2024, you’ll have a grace period of one year. This means you must file your initial beneficial ownership information report by January 1, 2025.
- For New Companies: Businesses created or registered on or after the commencement date of January 1, 2024, have a slightly tighter deadline. They must file their initial report within 30 days. This 30-day period is calculated from either the date the company receives actual notice of its effective creation or registration or the date a secretary of state (or equivalent) makes its creation or registration publicly known —whichever event occurs first.
When is the Green Light for Submitting Reports?
For those gearing up to meet these requirements, be patient. FinCEN will only begin accepting these beneficial ownership information reports starting January 1, 2024. So, there’s no need to rush – but you should prepare so you’re ready.
Should You Get Assistance?
You want to be sure that you’re filing the beneficial owner report not just on time, but correctly. And navigating the complexities of compliance can be difficult, especially under new laws. At Daniel Ross & Associates, we’re here to help. Our expert legal team can help you compile information, draft your filing, and submit the beneficial owner report to ensure you remain in compliance. Reach out to us at our Contact page for a no-cost initial consultation to discuss your legal needs.