Beneficial Ownership Information Reporting Requirement
RAM members are reminded of the U.S. Department of the Treasury’s new Beneficial Ownership Information Reporting requirement. Under the 2021 Corporate Transparency Act, companies doing business in the United States must now report certain information about the individuals who directly or indirectly own or control them.
The law is applied broadly and covers most businesses including corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States, or entities formed under the law of a foreign country and registered to do business in the United States.
Filing is simple, secure, and free of charge. Companies that are required to comply must file their initial reports by the following deadlines:
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. Generally, reporting companies must provide four pieces of information about each beneficial owner: (1) name, (2) date of birth, (3), address, and (4) identification number and issuer from either a non-expired U.S. drivers license, U.S. passport, or state issued identification document. An image of the identification document must also be submitted.
The company must also submit certain information about itself, such as name(s) and address. In addition, reporting companies creates on or after January 1, 2024, are required to submit information about the individuals who formed the company.
RAM members are strongly advised to begin preparing their reports now in advance of the upcoming Jan. 1 deadline. Industry efforts to delay the reporting deadline have proven unsuccessful thus far, making the possibility of relief increasingly unlikely. RAM also recommends that members complete the report on their own using the guidance materials provided below. RAM has been made aware that many law and accounting will not prepare reports on behalf of their clients due to liability concerns. Members should also be aware that there are unscrupulous third-party entities offering to prepare the reports for a fee, but their ultimate goal is to collect the personal information from your reports and sell it.
For more information please visit the FinCEN website where you can access guidance materials and a compilation of Small Business Resources, including a Small Entity Compliance Guide and FAQ document. Additional guidance may be found on the Massachusetts Secretary of State’s website, |