Background:
The Corporate transparency act requires all corporations under Federal Mandate to file with FinCEN (The Financial Crimes Network) with some exceptions a Beneficial Ownership Information Report (“BOIR”). The filing will include all beneficial owners of 25% or more of a corporation. As part of the filing, beneficial owners should file for a FinCEN identifier which will speed up the process of filing ownership information for multiple Corporations or to make updates to an existing filing.
Who is required to file a BOIR?
All owners of a corporation, LLC or similar entity who own 25% or more of such entity or who exercise control over such entity such as a CEO/President etc need to file.
What happens if I don’t file?
Both civil (fines of $500 a day) as well as criminal penalties can be assessed for those who don’t file timely.
What information do I need to file a Beneficial Ownership Information Report?
For the filing you will need the following:
Create a FinCEN Identifier (Recommended)
- Company Name
- State of Incorporation
- Tax Identification number
- Address
- Personal Government issued valid Identification (This will be needed to be uploaded)
The above information will be required for each beneficial owner of the Corporation who owns at least 25% of the Corporation and/or the person who exercises control over the entity.