Certain new entities are required to report corporate ownership within 90 days of creation. The Act requires most businesses (including existing businesses) to report. The purpose of the Act is to prevent illicit finance and went into effect as of January 1, 2024.

All reporting companies formed after 2023 have 90 days to report. Starting in 2025, the reporting period will reduce to 30 days. Preexisting companies only need to report be January 1, 2025. Any changes to company ownership (not applicant) also need to be reported within 30 days.

Who Must Report

A repoting company is an LLC, corporation, or anotehr entity created by filing a document with the secretary of state. This does not include a sole proprietorship, general partnerships, and limited liability partnerships.

There are 23 exemptive organizations. This includes tax-exempt nonprofits.

Where to Report

The government has set up a website: https://www.fincen.gov/ to report online.

What Needs to be Reported

Company information:

  • Legal name of the company
  • Trade Names
  • Complete US address
  • State of formation
  • EIN

Beneficial Owners and Company Applicant:

  • Full legal name
  • Date of birth
  • Current address
  • An image of either a passport; driver’s license; or identification provided by state, local government, or tribe.

A beneficial owner is any individual who either exercises substantial control over a company or controls at least 25 percent interest in the company. Exceptions to this rule includes individuals or entities who are: minor children; nominees, trustees, etc.; creditors; employees; and inheritors.

Will Laursen

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