Your business may have recently received notice that it is required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the United States Department of the Treasury responsible for combating money laundering, terrorist financing, and other financial crimes. Whether your organization must comply depends on many factors; electronic filing is free, and the compliance deadline varies depending on when your entity was registered. Some exceptions apply. Currently, 23 different types of entities are exempt from the filing requirements. 

Compliance at a glance: (1) Determine if your organization must file or whether an exemption applies; (2) Determine the deadline; (3) Determine where and how to report. To learn more about FinCEN's Beneficial Ownership reporting rule, click here. To determine if your organization is exempt, see FinCEN's compliance guide, which is available at FinCEN.

1. Do you need to file? Most entities, including corporations and limited liability companies, or entities that were otherwise created by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe or a foreign company that was registered to do business in any U.S. state or Indian tribe by such a filing. Currently, 23 exemptions apply, so check to see if your organization is exempt.
2. When is the filing deadline? Beneficial Ownership Information reporting is due between January 1, 2024, and January 1, 2025. If your organization is formed during 2024, you must file within 90 days of creation or registration. Beginning in 2025, reporting is due within 30 days of creation or registration.  
3. Where and how do I file? Reporting companies can report beneficial ownership information, free and filed electronically, through FinCEN’s BOI Reporting E-Filing System.  

Failing to comply with FinCEN reporting requirements may result in significant penalties, fines, and reputational harm. Therefore, businesses must have robust compliance programs to meet their reporting obligations. You should consult your attorney to determine your organization's compliance requirements. 

If you want more information about your organization's compliance obligations, contact the Dohrwardt Law Firm today. The Dohrwardt Law Firm focuses on commercial and energy law, representing all sizes of organizations, from startups through board governance. Bray Dohrwardt is licensed in Minnesota and Texas.

The information provided is only for general information and is not intended to constitute legal advice.  Information on this website, including third-party links, may not include the most up-to-date information, so you should contact your attorney to discuss your particular matter. Third-party links are provided for convenience only and are not an endorsement by the Dohrwardt Law Firm.