CONSTRUCTION INDUSTRY NEWS
The latest shifts, trends, and resources for contractors.
IMPORTANT NOTICE
Recent changes to the Beneficial Ownership Information reporting requirements may affect your organization. Please thoroughly review these updates to comply with the latest regulations. Also, please be sure to pay attention to any deadlines and necessary documentation to maintain compliance.
Starting January 1, 2024, many U.S. businesses must report information about their beneficial owners, i.e., those who own or control the company. Businesses must report Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a U.S. Department of the Treasury bureau. The reporting, a requirement of the Corporate Transparency Act (CTA), aims to combat financial crime and corruption and must be completed by January 1, 2025.
Key points about the update:
Who needs to report:
Any company formed or registered in the United States, including:
- Corporations
- Limited Liability Companies (LLCs)
- Limited Partnerships
- Certain trusts
What information needs to be reported:
This includes the legal name, date of birth, and address of each beneficial owner, as well as identifying information like a passport or driver's license number.
Filing deadline for existing businesses:
Companies formed before January 1, 2024, must file their beneficial ownership information by January 1, 2025.
Filing deadline for new businesses:
Companies formed in 2024 must file within 90 days of formation.
Where to file:
Beneficial ownership information must be submitted electronically through FinCEN's BOI E-Filing website.
Potential consequences of non-compliance: Businesses that fail to comply with the beneficial ownership reporting requirements may face significant civil penalties and possible criminal charges.
You can go directly to the FinCEN website for more information and answers to Frequently Asked Questions.
Keeping your records current is crucial for adhering to these new requirements. If you have any questions or need further clarification, please contact a legal expert specializing in compliance. We do not offer this service, but please feel free to contact me anytime when you need help with your construction bookkeeping, accounting, and business in general.
Disclaimer: This notice is for informational purposes only and does not constitute legal advice. You can consult with an attorney familiar with the CTA and its regulations for specific guidance.
We are committed to serving our clients with care and advocating for small businesses and construction companies in and around our local community. Please don't hesitate to contact us for help with construction bookkeeping, accounting, and business management. Call 1-800-361-1770 or email sharie@fasteasyaccounting.com if you have any questions.
