New Small Business Reporting Laws 2024

11 Jun

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Beneficial Ownership Information Reporting for Small Businesses

New reporting laws for small businesses enacted in the Corporate Transparency Act in 2021 are now taking effect in 2024. Most corporations, limited liability companies, limited liability partnerships, business trusts, and many limited partnerships are required to file a Beneficial Owner Information Report with the Department of Treasury disclosing information about their owners and persons who exercise control.

A reporting company that was created or registered prior to January 1, 2024, will have until January 1, 2025, to file. Those companies created in the 2024 calendar year will have 90 days after creation to file the initial report and after January 1, 2025, all entities created will have a 30-day window.

Once the initial report is filed, there is no need to file again unless there are significant changes in ownership that alter the information previously reported.

Additional information can be found here: https://www.fincen.gov/boi-faqs#B_2

FAQs

What is the new small business law?

The new law is the Corporate Transparency Act (CTA) requiring many small businesses to report beneficial ownership information to the Department of Treasury.

What is a BOI report?

A BOI report is a Beneficial Ownership Information Report that details the owners and controllers of a business.

Who is required to file a BOIR?

Most corporations, LLCs, LLPs, business trusts, and many limited partnerships must file a BOIR.

What is the purpose of a beneficial ownership information report?

The purpose is to increase transparency and combat illegal activities like money laundering and fraud.

When is the deadline to file a BOI report?

Businesses created before January 1, 2024, must file by January 1, 2025. Those created in 2024 must file within 90 days, and after January 1, 2025, within 30 days of creation.

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