Frequently Asked Questions

It is a filing that small businesses and startups need to file with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Government. It includes information about the business (where it was incorporated, any “doing business as” names, employer identification number, address) AND information about its owners and those who have substantial control over the business (name, date of birth, citizenship, residential address, and identification number [along with an upload of a government-issued ID]).

The deadline for the initial report for companies created prior to January 1, 2024 is December 31, 2024. For companies created on, or after, January 1, 2024; the deadline for the initial report is 90 days from formation. Upon any changes to the information requested about the business or its beneficial owners (including things as simple as change of address), the Company has 30 days to file an updated report with FinCEN. Fines for missing the deadline are $500 for each day the report is late.

Yes, the first is being a big business defined as a business that has $5M of revenue AND over 20 employees. There are additional exceptions based on the industry a business is in, which can be found here: BOI Small Compliance Guide v1.1 (fincen.gov), page 11, specifically.

The Corporate Transparency Act (CTA) was enacted in 2020 and became effective January 1, 2024. The purpose of the act is to deter money laundering, terrorism funding and other financial crimes. There is required reporting by U.S. businesses to the Financial Crimes Enforcement Network (FinCEN) that will make it more difficult for criminals to hide their activities.