September 25, 2023
FinCEN Publishes Small Entity Compliance Guide for the Corporate Transparency Act
John has been blogging about FinCEN’s rules for reporting of beneficial ownership information under the Corporate Transparency Act, which create new filing requirements applicable to a wide range of entities. FinCEN recently released a Small Entity Compliance Guide addressing these new requirements. In its announcement, FinCEN notes:
Among other things, the Guide:
– Describes each of the BOI reporting rule’s provisions in simple, easy-to-read language;
– Answers key questions; and
– Provides interactive checklists, infographics, and other tools to assist businesses in complying with the BOI reporting rule.The requirements become effective on January 1, 2024, and companies will be able to begin reporting beneficial ownership information to FinCEN at that time. FinCEN will provide additional guidance on how to submit beneficial ownership information soon.
The new reporting requirement are quite far reaching – as John noted in this blog, FinCEN estimated that 25 million existing legal entities, plus an additional three million new legal entities each year, will meet the criteria to file the required beneficial ownership reports, so I imagine this Small Entity Compliance Guide will get a lot of use!
– Dave Lynn