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Beneficial Ownership: Everything You Need to Know

12.12.2023

In a significant move to combat financial fraud and enhance transparency, Congress passed the Corporate Transparency Act in 2021. 

As a result, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has introduced new reporting requirements for beneficial ownership information (BOI) that will take effect on January 1st, 2024.

 

Who Needs to Report?

If you’re wondering whether your business falls under the reporting mandate, the answer lies in the structure and nature of your company. Reporting is required for:

  1. Corporations
  2. Limited liability companies (LLCs)
  3. Entities created in the U.S. by filing with a secretary of state or similar office
  4. Foreign companies registered to do business in any U.S. state or Indian tribe

 

Exemptions and Walkthrough Guide

It’s essential to note that not all businesses are subject to these reporting requirements. Publicly traded companies, nonprofits, and certain large operating companies are among the 23 types of entities exempt from beneficial ownership information reporting.

To help you navigate this process seamlessly, you can read the US Dept of Treasury’s comprehensive brochure here. This resource not only outlines the reporting criteria but also provides a simple walkthrough of the submission process. Understanding your obligations and complying with the new reporting requirements can be straightforward with the right guidance.

 

Electronic Submission Opens on January 1st, 2024

As of January 1st, 2024, reporting companies can electronically submit their beneficial ownership information through the designated platform. The submission process aims to enhance accountability and foster a more transparent business environment.

Stay informed and take the necessary steps to ensure compliance with the new reporting requirements. Visit our brochure for a detailed breakdown of the reporting criteria and a step-by-step guide to the submission process.

Reporting companies created or registered in 2024 will have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial reports.

 

Keeping Our Community Aware

At Pinnacle Bank, we’re committed to keeping you informed about regulatory changes that may impact your business. If you have any other questions about FinCEN or BOI, you can email customerservice@pinnaclebank.com, call 877.759.7939, or visit a Pinnacle branch near you

As members of your community, it’s our pleasure to help you and your business through these new developments.



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