ALERT: The Clock is ticking for small affected entities to file BOI's with FinCEN under Corporate Transparency Act...DUE DATE?? 12/31/24!

Small companies including corporations and LLCs with 20 or fewer persons whose organization documents such as the Articles of Incorporation or Articles of Organization are filed with the state Secretary of State must file a Beneficial Ownership Information [BOI] report with the Financial Crimes Enforcement Network [FinCEN]. FinCEN is the enforcement arm of the U.S. Department of the Treasury [DOT]. The BOI report asks for information about those who directly or indirectly own or control 25% or more or who have management and control over the organization.

Companies formed before January 1, 2024 have until January 1, 2025 to file the BOI with FinCEN detailing the names and identifications of the persons who own 25% or more or who have management over the company. For companies whose organizational documents are filed with the state Secretary of State on or after January 1, 2024 have 90 days to file the BOI and those filed on or after January 1, 2025 have 30 days to file. Consult with your attorney to see if your company is required to file the BOI with FinCEN.

Reportedly, there are about 32.6 million small companies who must file with FinCEN before December 31, 2024 of which only about 4 million have done so. So, it is expected there will be a large amount to companies vying for registration space as the 2024 year comes to an end. If the companies required to file BOI reports do not do so, there are criminal and civil fines and sanctions that may be imposed by the federal DOT at $500 per day and up to two years in prison

Note that companies of 20 or fewer persons required to report can obtain information about who must file BOI reports, when filing is required, what information must be reported, and additional information may be obtained at https://www.fincen.gov/ and https://www.fincen.gov/boi. FinCEN requires the person filing for the company provide a photo identification document to confirm their identity, so have a copy of your state Driver's License, U.S. Passport or other appropriate dentification. Other information is needed, so be sure to review the online information before you proceed with filing.

Just a Note that the DOT and FinCEN have not extended the time to file for affected companies except for those suffering the tragic effects of recent hurricanes. We were hopeful the DOT and FinCEN would grant a general extension for 6 - 12 months since it appears millions of affected companies will be clamoring to file by December 31, 2024, but, thus far, none has been granted.

If you are affected as a small corporation, LLC or other small business required to file with FinCEN do not postpone doing do as December 31, 2024, is fast approaching!!!