Beneficial Ownership Information reporting is changing in 2024

Changes are underway for business owners. Starting January 1, 2024, certain business owners will need to report beneficial ownership information(BOI) to the Financial Crimes Enforcement Network (FinCEN), an agency within the U.S. Department of Treasury. 

Q: Will my business have to start reporting?  

  • All businesses will need to report, but not all companies will be required to report company applicants. A company must report its company applicants if it is a:  
    • Domestic reporting company created in the US on or after January 1, 2024; or  
    • Foreign reporting companies first registered to do business in the US on or after January 1, 2024.  
  • A reporting company does not have to report its company applicants if it is either a:  
  • Domestic reporting company created in the US before January 1, 2024; or  
  • Foreign reporting company first registered to do business in the US before January 1, 2024.  
  • There will be no fee to report.  
  • NOTE: If your LLC was set up before January 1, 2024, you will not have a reporting requirement until January 1, 2025. 

Q: Who is a beneficial owner?  

  • A beneficial owner is someone that controls at least 25% of the company or has “substantial control.”  
  • NOTE: Accountants and lawyers do not qualify as beneficial owners.  

Q: Who are company applicants?  

  • Company can have up to two company applicants. To qualify as a company applicant, an individual must be
    • 1) the person who directly files the document that creates, or first registers, the reporting company or
    • 2) the person that is primarily responsible for directing or controlling the filing of the relevant document.  
  • NOTE: A company is only required to report company applicants if the company is created or registered on or after January 1, 2024.  

Q: What information do I need to report?  

  • A company will need to report:  
    • Its legal name  
    • Any trade names, “doing business as” (d/b/a), or “trading as” (t/a) names  
    • The current street address of its primary business address within the US, or for foreign businesses, the address the company conducts business in the US  
    • Its jurisdiction of formation or registration  
    • Its Taxpayer Identification Number  
  • A company will also be required to indicate if it is filing an initial report or a correction or update.  

Q: When and how do I need to file my initial report?  

  • Companies created or registered to do business before January 1, 2024 have until January 1, 2025 to file their initial report.  
  • Companies created or registered on or after January 1, 2024 will have 30 days to file their first report. The 30-day deadline is effective from the day the company receives notice that its creation or registration is implemented, or after a state office provides public notice of the creation or registration.  

Q: What if I need to make any changes?  

  • If any changes need to be made regarding the company or its beneficial owners, the company must file an updated report within 30 days of the change. A company is not required to update a report if the changes are about a company applicant.  

Q: Should I start reporting now?  

  • No. FinCEN will not accept reports before January 1, 2024. The form will be available on FinCEN’s website in January.  

Q: Are there any exemptions for reporting?  

  • Yes, there are 23 exemptions to reporting. Contact an Abacus Professional to see if you are exempt.  

The FinCEN has also provided Small Business Resources regarding the changes.  

Beware of reporting scams. You can learn more about what a fraudulent message may look like here.

As always, you can reach us with any questions at transportation@abacus.cpa or 417.380.5000.