Small Entities Must File New Beneficial Ownership Information Reports in 2024

Beginning January 1, 2024, a new law went into effect that will impact over 30 million entities in 2024. The Corporate Transparency Act (CTA) created a new reporting requirement. Most entities, including single member LLCs, must file online reports with the federal government and disclose information about the “beneficial owners” of the entities.


Existing entities have until January 1, 2025 to file a beneficial ownership information (BOI) report. Entities created or registered after January 1, 2024 have 90 days to file their first reports. Entities must report updated information within 30 days of the update.  There are limited exceptions to those that may be relieved of this requirement.


The CTA was enacted to help prevent money laundering, corrupt financial transactions, and financial terrorism. Specifically, the government stated that collecting BOI will “help to shed light on criminals who evade taxes, hide their illicit wealth, and defraud employees and customers and hurt honest U.S. businesses through their misuse of shell companies”.

Small Entities Must File New Beneficial Ownership Information Reports in 2024


Under the CTA the government may share the information with government agencies, financial institutions, and financial regulations.


A Beneficial Owner is an individual who directly or indirectly exercises substantial control over the reporting company. Among other definitions, a person who indirectly or directly owns or controls 25% or more of the entity is a Beneficial Owner.


This rule requires foreign and domestic corporations, LLCs, or other registered companies to do business in any US state or tribal jurisdiction. The rule also covers limited liability partnerships, business trusts in certain states, and most limited partnerships.


While the Rule is currently effective throughout the country, it is being challenged in Court and may be modified by the Congress.


Entities will face penalties of up to $500 for each day that they are in violation by failing to report. Don’t let that be you!


To learn more about this new law and exactly what it means for your business, contact Cook, Criag, and Francuzenko. Our attorneys have over 100 years of experience and a tremendous amount of knowledge and skill.

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