by Jessica Crowley, Maine APEX Accelerator
Beneficial Ownership
January 1st, 2024, the Corporate Transparency Act was put into effect; this requires certain entities, including many small businesses, to report information about the individuals who
ultimately own or control them. If you have a business or entity that files with the Secretary of State, you are most likely required to report to the Financial Crimes Enforcement Network (FinCEN). Authorized Agencies may use this information reported to FinCen to combat money laundering and other activities that involve shell companies. There are an estimated 40 million businesses and entities that need to complete this FinCen report before January 1st, 2025.
Why do I need to report it?
The United States Treasury has decided there will be a daily fine of $591 and potential legal ramifications for the entities who do not report or comply before January 1st, 2025. $591 A DAY! That can really add up! Currently, FinCen has just over 6 million entities that have reported their beneficial owners. Once you report on FinCen, you don’t need to report again. The process to report should only take 20 minutes on average and we have included additional information. Here is the link to FinCen’s website on Beneficial Ownership Information: https://boiefiling.fincen.gov/
For more information on the impact of the Corporate Transparency Act and what it means for your business, check out this article from the Maine Small Business Development Center: https://www.mainesbdc.org/corporate-transparency-act/
For help with the Fin Cen website, check out their support page here: https://boiefiling.fincen.gov/help