Welcome to 2024! If you find yourself as the “beneficial” owner of a business, whether it’s an LLC, corporation, or a similar entity, it’s time to gear up for the crucial task of filing your first beneficial ownership report with FinCEN. The primary mission of FinCEN is to safeguard the financial system from illicit activities, such as money laundering and financing terrorism. By fulfilling this obligation, we contribute to making the United States a safer place to live.
Who Must File?
As a “beneficial owner” of a business, this requirement applies to you if you own an LLC, PC, or another corporation, or an entity formed by filing documents with the Maryland Secretary of State (or the state where your business is domiciled). While many entities are exempt, you can check the list here.
Timing of Filing
The filing window opened on January 1, 2024, and is currently open. If your entity is already formed, the deadline for filing is December 31, 2024. For those yet to form their company, file promptly once the formation is complete. Access the filing form here.
BOIR ID
Consider obtaining an official BOIR ID beforehand for a smoother application process. However, first-time filers may find it more efficient to request the ID as part of the application. This unique identifier will be generated and provided upon submission, serving as a key element for future filings.
Before You Start
Ensure a seamless filing experience by having the following information ready:
- Official company name, address, and tax identification number
- Owner’s name, address, and driver’s license details (with an uploaded image)
Finishing
After submission, save a copy of the “Filing Transcript” as proof of your filing.
Future Actions
Prepare for annual reporting obligations. While the first filing may seem challenging, subsequent years will be more straightforward with access via the BOIR ID. Any changes to your entity require an update within thirty days.
Penalties for Non-Filing
Take note of the severe penalties for non-compliance, including fines up to $10,000 and imprisonment. The key takeaway: file promptly!
On a positive note, I recently tackled this task, and it took me less than 15 minutes. Despite initial impressions, complying with this requirement is more efficient than it may seem.