New Reporting Requirements Under The Corporate Transparency Act

Beginning January 2024, several new laws began to take effect, impacting various professionals - specifically those U.S. businesses and entities who file documents with the secretary of state. The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) began accepting Beneficial Ownership Information Reports ("BOI report" or "BOIs") in January in an effort to increase transparency surrounding entity ownership. Those who fail to comply could receive significant penalties – including fines and/or imprisonment.

What is the Corporate Transparency Act & Beneficial Ownership Information?

The Corporate Transparency Act ("the Act") was implemented as federal preventative legislation to monitor and punish actors who seek to fraudulently conceal their entity ownership and operations from Congress, whether for businesses, LLPs, corporations, and the like. ¹ The Act requires entities operating in the United States to report specific beneficial