What is this? Beneficial Ownership Information
As of January 1, 2024, all companies registered with ANY Secretary of State (Corporations, Limited Liability Companies, Partnerships) will be subject to a new reporting regime. Fin Cen (Financial Crimes Enforcement Network) will be accepting this information on behalf of the US Treasury as a separate filing for all existing and future business formations.
This report will require detailed ownership information for each entity. This would include both direct and indirect ownership. Direct ownership may be easy unless you have tiered entities. (those whose owners are other entities)
Indirect ownership may include beneficiaries, spouses of owners, “sweat equity” partners, and even those owners of tiered entities. Foreign ownership is a key issue and may not affect most of you. Foreign Bank accounts and ownerships in foreign corporations are already reported through Fin Cen or should be.
We have not read all the 61 pages of information/comments and regulations yet but believe them to be more that straight-forward.
At this moment we are examining the issue and will report back when the actual form of filing is available. We also believe that this will be an annual requirement, adding more layers to your compliance. It will surely add more costs to your company.