Have you heard of the new requirement for reporting beneficial ownership information to the Financial Crimes Enforcement Network, also referred to as FinCEN?

This is a new requirement for all businesses operated within the United States. Any business formed before January 1, 2024 has until the expiration of 2024 to complete the reporting, but any business formed after January 1, 2024 has 90 days from formation to complete the reporting and as of January 1, 2025, the filing is due a mere 30 days from initial formation.

A failure to submit the reporting timely can result of substantial penalties. According to CinFEN:

“…willfully failing to report or make updates to the reported data shall be punished with a civil penalty of up to $500 for each day that the violation continues, or criminal penalties, including imprisonment for up to two years and/or a fine of up to $10,000.”

As such, we are encouraging all business owners to complete their reporting immediately to avoid any risk of penalties.