BOI “Countdown to Compliance” resource provides guidance on navigating imminent US reporting obligations
Given the magnitude of new “beneficial ownership” rules that are set to take effect in the US in January 2024, Wolters Kluwer has published a “Countdown to Compliance” guide to help educate and provide clarity for reporting companies. The guide focuses on the most significant requirements the new law will impose on US businesses subject to the new reporting obligations.
The Corporate Transparency Act (CTA), which was enacted by Congress on January 1, 2021, will require reporting companies to file a report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The final reporting rule was issued by FinCEN in September 2022 and will require companies to collect, document and monitor previously unreported data on a company’s primary owners via completion of a Beneficial Ownership Information (BOI) report. FinCEN estimates that the rule will impact approximately 32.6 million reporting companies in 2024 alone, and 5.5 million new reporting companies that are formed and registered every year going forward.
Every person who owns or manages a limited liability company (LLC) needs to be aware of the new reporting requirement, first to determine if their company is subject to BOI reporting and, if so, to begin preparing to comply.
“Beneficial Ownership represents the most sweeping regulatory change to impact small businesses in this country since the Depression era of the 1930s,” notes George May, Vice President and Segment Leader, Small Business, for CT Corp, a Wolters Kluwer business. “And the stakes are high, given the consequences of non-compliance, including hefty fines and, potentially, incarceration. It is critical that companies understand their reporting obligations under the new rule and begin preparing for compliance.”
The “Countdown to Compliance” guide addresses frequently asked questions, from definitions on the eligibility of “beneficial owners” and “reporting companies” to details on the filing process, costs, and other considerations. Special sections pertaining to law firms and accounting firms provide insights on CTA compliance, whether a firm is subject to the rule itself or in the capacity of guiding clients.
For more information on navigating the new beneficial ownership rule, visit the CTA Resources page.
