Starting January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) will require reporting businesses to file a statement of beneficial ownership to identify persons who exercise substantial control or hold at least 25% ownership interest, as well as any individual responsible for filing creation or registration documents.
Reporting companies include domestic or foreign entities that are created or registered to do business in the U.S. by filing documents with the secretary of state or a similar office. Disclosures consist of the name of the company and personal information from each required party, including birth date, address, photo ID, and unique identifying number, such as a social security number.
Companies created or registered after January 1, 2024 will have 30 days after receiving notice of creation or registration to file an initial Beneficial Ownership Interest (BOI), while companies existing prior to 2024 will have until January 2025. Willful violations will result in civil penalties up to $500 a day and/or criminal penalties up to $10,000 and/or two years in jail.
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