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New Rule Requires Small Businesses and LLCs to Report Ownership Information. Share: As of Jan. 1, 2024, many businesses will be required to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) to identify those who directly or indirectly own or control the company.
Thanks to the Corporate Transparency Act, starting Jan. 1, 2024, all companies created in the United States must complete a new form with the Treasury Departments Financial Crimes Enforcement Network, commonly known as FinCEN, unless one of 23 exceptions applies.
On Jan. 1, 2024, a new reporting regime will require limited liability companies (LLCs), corporations and other entities to file beneficial ownership information reports with the U.S. government. The new reporting requirement is imposed by a statute called the Corporate Transparency Act (CTA).
Currently, all states, except Ohio, require some sort of annual report filing. Specific filing requirements and deadlines vary by state. Some states also require an initial report when first starting a business.
The BOI report is part of a broader effort by FinCEN and the U.S. government to down on financial crimes. Specifically, the final rule aims to bolster corporate transparency. It will help law enforcement stop fraud, corruption, money laundering, terrorist financing, and similar activities.
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Examples of information returns include Forms W-2 and 1099. All individuals, partnerships, estates, trusts and corporations making reportable transactions need to file information returns. Apart from filing information returns, these entities also need to provide income recipients with statements.
The Corporate Transparency Act (the CTA), which went into effect January 1, 2024, requires reporting companies in the United States to disclose information regarding its beneficial owners, i.e., the individuals who ultimately own or control a company, to the Treasury Departments Financial Crimes Enforcement
[Updated March 21, 2025] All entities created in the United States including those previously known as domestic reporting companies and their beneficial owners are now exempt from the requirement to report beneficial ownership information (BOI) to FinCEN.

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