Business Owner Information

__UPDATED

PER FEDERAL JUDGE IN TEXAS FILINGS ARE SUSPENDED UNTIL FURTHER NOTICE__

The Corporate Transparency Act (“CTA”) was enacted into law as part of the National Defense Act for Fiscal Year 2021. The CTA requires a disclosure of the Beneficial Ownership Information (otherwise known as “BOI”) of certain entities from people who own or control a company.

On 24 March of 2023 the Financial Crimes Enforcement Network (FinCEN) issued a Press Release as well as publishing initial guidance to allow better understanding by the public as it relates to the BOI.

FinCEN issued these FAQs as a reference to all.

They also issued a single page Graphic in pdf format for easy reference. It contains key information for your use and compliance.

FinCEN created a short detailed Video that is well worth the watching to help all understand the changes.

Now What to Do

You need to file a BOI report in 2024, if you haven't already been approached by your banking institution.

Please register at Fincen.gov/boi in order to create the Beneficial Owner Information Report due in 2024. If you would like help registering KITS can provide that help for you.

Facts and Fables about BOI

FACTS

Who Needs to do it? Anyone who has an LLC, S-Corp or Corp needs to fill this out. Partnerships do not, unless your partnership is an LLC.

When does it need to get done? If you are in the above mentioned group and already have a business set up, then you should do it now (pre-2024) which will then allow you util December 31, 2024 to fill this form out.

Forming a new Company in 2024 requires you to fill out the data within 90 days of registration at the state level.

What Information is needed

Beneficial Owners (someone who owns at least 25% or someone who maintains (exercises substantial control at the company) need to provide the following: Name, Address, DOB, Company Address, and a copy of an ID issued by the Government.

FABLES

Jail Time? Nah (at least not immediately)

Fines? Nah (at least not immediately)

You can spend up to 2 years in jail if you do not complete the paperwork. You can be fined up to 591US$ a day for not completing the paperwork with a 10K cap.

US Government Data Imposition They already have this data and the CTA is hoping to eliminate financial crimes and those folks that are playing shell games. All the data you are filing out you did so at the time of creating your bank account. Nothing new. Yes, the Government agencies can get info from the database, but not Joe Blow. (1)