Beginning 1/1/2024, private companies – domestic corporations, LLCs created in any state in the US and foreign corporations and LLCs registered to do business in the US must register on the new Beneficial Ownership Secure System (BOSS) within 30 days of creation or registration.
Domestic reporting companies created before 1/1/2024 and entities that became foreign reporting companies before 1/1/2024 have until 1/1/2025 to file their initial report.
Exempt entities are those that are heavily regulated that include broker/dealers; large operating companies with 20 full-time employees, operating in the US with more than $5 million in gross receipts or sales.
Beneficial Owner: any individual who directly or indirectly, either exercises substantial control over such reporting company or controls at least 25% ownership interests in such company.
What is reported:
- Entity information: name, address, jurisdiction formation and EIN
- Beneficial owner, DOB, address, and unique ID – nonexpired passport, driver’s license, etc.
Penalties for noncompliance: up to $500 a day for failing to file or filing false information up to $10,000.
For additional information and clarification, FinCEN published FAQs available at https://www.fincen.gov/boi-faqs.