As a result of the Federal Corporate Transparency Act of 2021, certain companies must report Beneficial Ownership Information (BOI) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) no later than January 1, 2025 [1]. In addition, any changes to BOI filings must be filed with FinCEN within 30 days of such change. This new requirement is part of the U.S. Government’s effort to go after bad actors seeking to hide gains through shell companies and other less than transparent ownership structures.

There are 23 exemptions to such filings, but if your business doesn’t qualify for one of them, then you must file a report. Compass Law Partners has assisted businesses in determining whether such a report must be filed and has experience filing such reports. Unfortunately, even with the exemptions, most small businesses will need to file a report and periodically update it.

Once a business determines whether or not it must file BOI reports, it must also determine who the beneficial owners of the company are for such filing. There are two qualifiers: (1) someone who exercises “substantial control”; and (2) someone who owns at least 25 percent of the ownership interest of the company. In addition, for businesses formed after January 1, 2024, there are additional reporting requirements.

For the months of September and October 2024, Compass Law Partners is offering clients a discounted flat fee of $500 to conduct the analysis of whether you need to file such report to the U.S. Treasury’s FinCEN; such fee also includes filing the report on your behalf.