Part I: What is Beneficial Ownership Information Reporting (BOIR)? Does my business need to file a report with our information to the federal government?

In this multi-part series, we will explore the above questions and more. The purpose of this series is to help your understand what the intent of this required disclosure is, who it applies to and how to comply with the requirements if applicable. Submitting information through the BOIR system may be required for your business and the deadline for when to file depends on when your business was formed. First, let us take a look at some brief background information on the BOI.

On January 1, 2021, the U.S. Congress passed the National Defense Authorization Act (NDAA) for the 2021 Fiscal Year. The NDAA included the Corporate Transparency Act (CTA).

Pursuant to the CTA, certain businesses are required to report their ownership information to the U.S. government. The intended purpose of the reporting is to aid the federal government in uncovering and preventing money laundering, terrorism and other crimes involving business entities. The CTA requires "reporting companies" to disclose information about their "beneficial owners" to the government. Specifically, the information is reported to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). Have you ever even heard of FinCEN?

FinCEN was established in 1990 during President George H.W. Bush's lone term as Commander-in-Chief. A 1990 U.S. Department of Treasury Order, signed by then Treasury Secretary Nicholas F. Brady, stated:

“The mission of FinCEN is to provide a governmentwide, multi-source intelligence and analytical network in support of the detection, investigation, and prosecution of domestic and international money laundering and other financial crimes by Federal, State, local, and foreign law enforcement agencies.”

"FinCEN" stands for Financial Crimes Enforcement Network and was established in 1990.

You may be wondering whether or not your business is considered a reporting company or if there is an exemption that applies to your company. If your entity is a reporting company, then you are probably wondering who is considered a beneficial owner that must be reported. In the next part of this series, we will dive into the nitty gritty of this new CTA requirement and provide answers to these questions and more.

If you have any questions about Beneficial Ownership Information or about compliance with this new requirement, please do not hesitate to contact our office to schedule a meeting or call.

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The information in this blog is provided solely for informational purposes. The information provided is not intended to create an attorney-client relationship and shall not be construed as legal advice on any specific matter. Each legal matter is unique and requires an analysis based on the particular circumstances. As a result, the information provided here may not be applicable in every situation, including your situation, and action should not be taken based on this information without seeking specific legal advice based on particular circumstances. Results may vary depending on your particular facts and legal circumstance.