As we enter the fourth quarter of 2024, we are reminding our business clients about the Corporate Transparency Act’s requirement to file a beneficial ownership information report with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).  Specifically, companies created or registered in the United States before January 1, 2024 must file by January 1, 2025.  (Starting in 2024, companies must file within 90 days of creation or effective registration date.)  This is a one-time reporting requirement, not an annual one.  However, changes to a company’s beneficial ownership – including address changes – require filing an updated or corrected report within 30 days.

This nationwide requirement is meant to help combat corruption, money laundering, and terrorist financing.  There are nearly two-dozen exceptions to the requirement (including for charities and publicly-traded companies), but FinCEN nevertheless estimates that approximately 32 million companies must file.  This includes single-member LLCs as well as other companies.  Although there is ongoing litigation about the CTA’s constitutionality, the reporting requirement is expected to be broadly enforced.  There is currently only a very limited  injunction in place that benefits a small number of companies.

You can find more information about how to file by visiting https://www.fincen.gov/boi.  Lexpat also can help determine whether an exemption may apply to your company, and we can assist you with the filing process.

Note that this requirement applies to U.S. business clients only.  However, several other countries have beneficial ownership registries of their own, and registration elsewhere may be required under certain circumstances.  The New York LLC Transparency Act also creates similar, additional filing requirements for New York-registered companies.

Lexpat Global Services is a team of counselors, consultants, and capacity-builders.  We feature elite lawyers, consultants, investigators, and program officers serving private industry and public sector clients, especially those working at the intersection legal and security issues.  To learn more about Lexpat’s team and services, visit www.lexpatglobal.com or email us at [email protected].