As of January 1, 2024, a new reporting requirement mandated by the passage of the federal Corporate Transparency Act (CTA) will require most existing and newly formed non-exempt businesses to report information about their beneficial owners to the U.S. Treasury's Financial Crimes Enforcement Networks (FinCEN).
What is the new Beneficial Ownership Rule?
The purpose of the rule is to promote transparency in the ownership of businesses for our law enforcement.
If you are currently registered at the Secretary of State, you will also have to register with the federal government. This can be done anytime between January 1, 2024, through January 1, 2025. If you are a new business after January 1, 2024, and are required to register at the Secretary of State you will have 30 days to then register with the federal government at fincen.gov.
This is a new rule being put in place by the government and you will be expected to:
- Identify Your 25% Owners.
- Identify those who have substantial control over your business.
- Identify a company applicant.
- Provide information on the company itself.
Though most businesses will need to complete this new requirement, there are exemptions to this rule and you may want to read more at fincen.gov/boi.
If you are uncertain about your exemption status or unsure of what information from your business qualifies for inclusion in this report, please reach out to us via phone at 800-852-5886 or email us at commercialservices@umassfive.coop.