Effective January 1, 2024, many companies in the United States must report information about their Beneficial Owners - those who ultimately own or control the company. This information must be submitted to the Financial Crimes Enforcement Network (FinCEN).
Any corporation, limited liability company, or similar entity created by filing a document with a Secretary of State or comparable office under state or tribal laws or formed under foreign law and registered to do business in the United States, is a reporting company.
These entities must disclose information about their beneficial owners and company applicants to FinCEN under the Corporate Transparency Act. Exclusions apply to heavily regulated entities that already report this information to other federal agencies and to inactive entities.
A Beneficial Owner is an individual who directly or indirectly exercises substantial control over the reporting company or owns or controls at least 25% of its ownership interests.
A Company Applicant is the individual who files the document with a Secretary of State or similar office to create the domestic reporting company or register the foreign reporting company in the U.S. This also includes the person primarily responsible for directing or controlling such filings.
For each beneficial owner or company applicant, the following must be reported:
Full legal name
Date of birth
Residential address
Identification number from an acceptable ID (e.g., passport or driver's license) and the name of the issuing state or jurisdiction, with a copy of the ID attached
Companies created before January 1, 2024 must file the initial report by January 1, 2025.
Companies created after January 1, 2024 must file within 90 days of receiving notice.
Companies created after January 1, 2025 must file within 30 days of receiving notice.
Failure to report or update beneficial ownership information may result in a civil penalty of $500 per day and a criminal penalty of up to $10,000 or imprisonment for up to two years.
For assistance with filing Beneficial Ownership Information reports, we recommend consulting your attorney or financial professional, as this service is not available with JHA at this time.
