Starting January 1, 2024, the Corporate Transparency Act (CTA) mandates that certain business entities report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This new requirement, known as Beneficial Ownership Information Reporting (BOIR), aims to enhance transparency and combat financial crimes. Non-compliance can result in fines as high as $500 per day. 
 
Who Needs to Report: Corporations, LLCs, and similar entities must file, but there are exemptions for large operating companies, government entities, publicly traded companies, financial institutions, tax-exempt entities, inactive entities, subsidiaries of exempt entities, and other regulated entities. 
What to Report: Detailed information about beneficial owners, including full legal names, addresses, dates of birth, and unique identifying numbers from official documents such as passports or driver’s licenses. 
 
Deadlines: 

• Entities Created Before January 1, 2024: Must file by January 1, 2025. 

• New Entities registered after January 1, 2024: Must file within 90 days of formation. 

• Ongoing Requirements: Report any changes in beneficial ownership within 30 days. 

Why Compliance Matters: Failing to meet BOIR requirements can lead to severe penalties, including fines of up to $500 per day for non-compliance. Accurate and timely reporting helps ensure your business stays compliant and avoids these costly fines. Compliance also contributes to a more transparent and secure business environment, helping to combat financial crimes such as money laundering and terrorism financing. 

Resources and Support: FinCEN offers comprehensive guides and FAQs to help businesses navigate the new requirements: 
 

• FinCEN BOIR Rule and Guidance: Detailed information about the BOIR requirements and the Corporate Transparency Act can be found on FinCEN’s official website: FinCEN BOIR Rule 

• Frequently Asked Questions (FAQs): FinCEN has published an extensive FAQ document that addresses common questions and provides clarity on specific aspects of BOIR reporting: FinCEN BOIR FAQs 

• Small Entity Compliance Guide: This guide is specifically designed to help smaller entities navigate the BOIR requirements with step-by-step instructions and examples: FinCEN Small Entity Compliance Guide 

 For detailed assistance, consider consulting Otterz. Staying informed about the latest regulations and ensuring proper documentation is crucial for maintaining compliance. 
 
How Otterz Can Help: Otterz offers comprehensive bookkeeping, tax accounting, payment processing, and advanced AI tools to streamline financial operations. As part of our services, we handle BOIR filing at no additional cost for customers using our All-in-One Accounting Packages. Our expert team ensures accurate and timely submission, allowing you to focus on growing your business without the stress of compliance issues. 

Learn More: For a detailed guide on BOIR and how to avoid fines, read the full article on the Otterz blog here.