The Financial Crimes Enforcement Network has issued a law requiring most small business owners to submit beneficial ownership information to the agency effective Jan. 1, 2024
Starting Jan. 1, the Corporate Transparency Act (CTA) requires more than 32 million businesses to report information about their business and business owners to a new federal database maintained by the Financial Crimes Enforcement Network (FinCEN). Almost all small businesses will have new obligations under the law. To help clarify the requirements of the law, NFIB is hosting a special webinar on Jan. 17.
NFIB released a statement regarding the U.S. Treasury’s FinCEN final rule on beneficial ownership under the CTA saying, “The rule does not seek to minimize the impact on small businesses or provide the clarity needed by small businesses to comply. FinCEN failed to strike a balance on which businesses must report, what information must be reported, and when the information must be reported. At the same time, under this rule, many small businesses will not know if they need to register with FinCEN, with the prospect of civil and criminal penalties hanging over their head for non-compliance.”
While NFIB is still fighting to repeal this law, here’s what you need to know to be in compliance. It will affect a broad spectrum of businesses (U.S. and non-U.S. entities including LLCs, corporations, and entities formed under state or tribal laws) and require them to begin filing reports on their beneficial owners to FinCEN. Businesses that fall under this new law are corporations, LLCs, or other similar entities that are created by filing with the secretary of state or other similar agency with fewer than 20 employees and less than $5 million in gross receipts or sales as reflected in the previous year’s federal tax returns.
Join NFIB’s free webinar to learn more about beneficial ownership, including:
- What is the Corporate Transparency Act?
- Who is—and who isn’t—required to report BOI?
- When, where, and how BOI reports are filed, and
- The benefits of working with a trusted provider to simplify CTA complexity.
Registration is open for the free webinar on Jan. 17 at 12 p.m. ET. The webinar will be available to those who register on-demand after the event. For more information on the reporting requirement, read NFIB’s FinCen One Pager.
TAKE ACTION: Send a message to urge your elected official to repeal this new law. Small business owners are not getting the clarity needed on the requirements and will be penalized for not complying.