Quick Guide: U.S. Beneficial Ownership Information Registry
What is it? A new requirement by the Financial Crimes Enforcement Network (FinCEN) for U.S. businesses to report their beneficial owners. It’s part of the Corporate Transparency Act to fight illicit financial activities.
Who Must Report? If your business was set up or started operating in the U.S. before January 1, 2024, report your ownership information by January 1, 2025. For businesses established in 2024, you have 90 days after registration to report.
How to Report? It’s done online via FinCEN’s website. You’ll need details like your business’s legal name, address, Taxpayer ID, and information about each beneficial owner (like name, birthdate, address, and ID document details).
Mandatory? Yes, for applicable businesses. It’s a one-time report, unless there’s a change in ownership or control.
Costs: It’s about $85 for most businesses to prepare and submit the initial report.
Fines for Non-Compliance: Not reporting can lead to significant legal and financial consequences, although specific penalty amounts were not detailed in the sources.
Privacy and Security: FinCEN ensures confidentiality, storing data in a secure, non-public database.
This new rule is more than a legal formality; it’s a commitment to transparent and ethical business practices. For detailed info, visit FinCEN’s FAQ page
