Are you aware of the upcoming beneficial ownership information filing requirement that will start in January 2024? The Financial Crimes Enforcement Network (FinCEN) issued their first set of guidance materials, aiming to help individuals and small businesses understand the incoming filing requirement. According to the guidance, “beneficial ownership information” refers to individuals or individual who directly or indirectly own or control a company.

To enhance corporate transparency and discourage illegal activities like money laundering, companies must report the beneficial ownership information to FinCEN. The guideline applies to domestic and foreign reporting companies, including corporations, LLCs, or any other legal entity that was created by filing documents with a secretary of state or similar body. However, exemptions are available, and there are 23 different types of entities exempted from the requirement.

To ensure a smooth transition, FinCEN has put together an online platform for reporting and published frequently asked questions on their website along with an introductory video on YouTube. If you’re a business owner or operate a legal entity registered to do business in the U.S, it’s essential to start preparing for the beneficial ownership information filing requirement.

Here are three tips to keep in mind:
– Stay updated with the latest guidance materials available on the FinCEN website.
– Ensure that you have all documents and information needed to report beneficial ownership information accurately.
– Identify whether you qualify for any exemptions and seek professional advice if needed.