Many businesses, including those that provide real estate services, must comply with a new federal reporting requirement deadline of Jan. 1, 2025.
Under the bipartisan Corporate Transparency Act, companies operating in the U.S. are required to disclose key ownership information, and attorneys will play a crucial role in guiding their clients through this compliance process.
Enacted in 2021 to curb illicit finance, the act requires many companies doing business in the United States to report information about the individuals who ultimately own or control them.
FinCEN says filing is simple, secure and free. Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024, must file by January 1, 2025.
Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
Beneficial ownership information reporting is not an annual requirement, according to FinCEN. A report only needs to be submitted once, unless the filer needs to update or correct information.
FinCEN’s Small Entity Compliance Guide walks small businesses through the requirements in plain language. Filers can also view informational videos and webinars, find answers to frequently asked questions, connect to the contact center, and learn more about how to report at www.fincen.gov/boi.
