Effective on Jan. 1, 2024, The Financial Crimes Enforcement Network (FinCEN) issued a final rule that sets forth beneficial ownership information reporting requirements as mandated by the Corporate Transparency Act.
The new rule will affect a broad spectrum of businesses, including most limited liability companies (LLCs), corporations and entities formed under state or tribal laws with 20 or fewer employees and $5 million or less in gross annual receipts.
Information required for reporting includes the full legal name of the company, any trade name or other name used for business, current address, state or tribal jurisdiction where the company is registered, taxpayer ID number, employer identification number (EIN) or social security number (SSN) and details about the beneficial owners who have significant control over the company or who own 25% or more of the company.
Companies formed prior to Jan. 1, 2024, will have until Dec. 31, 2024, to file an initial report. Companies formed after the first of the year will have 30 days to file after receiving notice from FinCEN. Penalties for not reporting include two years in prison and $500 a day, up to $10,000.
After Jan. 1, 2024, retailers who fall under the rule can submit their information here.
