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New in 2024: Beneficial Ownership Information Reporting

Starting January 1, 2024, companies will be required to report information to the U.S. government about who ultimately owns and controls them. This reporting, known as Beneficial Ownership Information Reporting, aims to identify individuals with substantial control over a company. Companies failing to comply with these new requirements may face fines and potential criminal charges.

The process involves submitting a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN) to enhance transparency and combat financial crimes by identifying the true beneficiaries behind corporate structures. FinCEN is authorized to collect this information per the Corporate Transparency Act as set forth by the Anti-Money Laundering Act of 2020.

Corporations, LLCs, LPs, and LLPs are required to report BOI to FinCEN. This is done electronically through a secure filing system available via FinCEN’s website,

Note: There are 23 basic exemptions for companies. You can find the complete list of exemptions at

Reporting businesses must disclose information about individuals who own or control at least 25% ownership interest or have substantial influence over the company. BOI reports will require reporting companies to identify the entity, company applicants, and its beneficial owners, ownership interest including name, birthdate, address, and an image of an acceptable identification document.

Failure to report BOI can result in serious consequences. Companies failing to provide accurate or timely BOI may face civil penalties of $500 per day, up to a maximum of $10,000. Willfully failing to submit BOI can also lead to criminal penalties, including imprisonment of up to 2 years.

To avoid these penalties, businesses must annually comply with the reporting requirements set forth by FinCEN. If you have more questions about BOI reporting, go to

According to FinCEN, attorneys and CPAs cannot file on a business’s behalf. However, we are allowed to assist.  Remember, CPA Consulting Services is always here to help you through your filing requirements.

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