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The Corporate Transparency Act requires all existing “business entities” and “beneficial owners” to file a Beneficial Ownership Information Report with the U.S. Treasury’s Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Secure System (“BOSS”) on or before January 1, 2025, and entities established thereafter with 90 days of establishment. The stated purpose is to identify money laundering, tax evasion and other financial crimes, and the BOSS database will be accessible only to crime enforcement and tax collection entities.

By January 1, 2025, Beneficial Ownership Information Reports will be required from:

  • All non-exempt business entities, including trusts, authorized to or conducting business, owning assets or controlling a business in the U.S.
  • Beneficial owners, persons or entities controlling or owning 25% of a non-exempt business entity, must also file a Beneficial Ownership Information Report.
  • Exempt organizations include large operating entities (more than 20 employees and $5,000,000.00 income), inactive entities, tax exempt entities, political organizations, charities and insurance companies.
  • Business entity reporting requires name, address, trade name, jurisdiction of formation and taxpayer identification number.
  • Beneficial owner reporting requires name, address, date of birth, a unique identification number like passport or driver’s license and a photo image.
  • The treasury department is to open the FinCEN BOSS database to accept reports on January 1, 2024.
  • There will be fines assessed for failure to report after December 31, 2024.
  • There are already reports of scammers offering to assist with compliance, but they are merely seeking to steal your business or personal information, so be cautious.

We plan to assist our clients with reporting when their annual company reports are due to their State of incorporation or establishment. We are also ready to assist you in assessing your obligation to and reporting and will provide updated information when BOSS is operational.

The lawyers of Brooks, Tarulis & Tibble, LLC can address many of these issues for our clients and work with other professionals who address them. If you have any questions or if we can assist you in this regard, please contact us.

This Brief is designed to provide our friends and clients with information regarding the various subject matters covered, it is not designed to take place of legal, accounting, or other professional advice.  If expert assistance is required, the services of a competent professional should be sought. This memorandum may constitute advertising under the rules regulating Illinois attorneys.

Brooks, Tarulis & Tibble, LLC
1733 Park Street, Suite 100
Naperville, Illinois 60563

630-355-2101 | info@napervillelaw.com | GET DIRECTIONS