What is the information about beneficial owners?

Beneficial ownership information refers to identifying information about persons who directly or indirectly own or control a company.

Why do companies have to report beneficial ownership information to the US Treasury Department?

In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership reporting requirement as part of the U.S. government’s efforts to make it more difficult for bad actors to hide or profit from their ill-gotten gains through shell companies or other opaque ownership structures.

How will I report information about the beneficial owner of my company?

If you are required to report information about your company’s beneficial ownership to FinCEN, you will do so electronically through a secure filing system available through the FinCEN website. This system is currently being developed and will be available before your report is due.

Is a reporting company required to use an attorney or certified public accountant (CPA) to submit beneficial ownership information to FinCEN?

No. FinCEN expects that many, if not most, reporting companies will be able to submit their beneficial ownership information to FinCEN on their own using the guidance FinCEN has issued. Reporting companies that need help meeting their reporting obligations can consult with professional service providers, such as attorneys or accountants.

Which companies will be required to submit beneficial ownership information to FinCEN?

Companies required to report are called reporting companies. There are two types of reporting companies:

• Domestic reporting companies: Corporations, limited liability companies, and any other entity created by filing a document with a secretary of state or any similar office in the United States.
• Foreign reporting companies: Entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by filing a document with a secretary of state or similar office.

What penalties do individuals face for violating BOI reporting requirements?

As specified in the Corporate Transparency Act, a person who intentionally violates the BOI reporting requirements may be subject to:

• Civil penalties of up to $500 for each day the violation continues.
• Criminal penalties of up to two years in prison and a fine of up to $10,000.

Possible violations include intentionally failing to file a beneficial ownership information report, intentionally filing false beneficial ownership information, or intentionally filing incorrect information.

How do I report?

Reporting businesses can contact us at (602)-864-5038, and we will be happy to assist you with your report.