As the business landscape continues to evolve, so do the regulatory requirements that govern it. Under the Corporate Transparency Act, many entities registered with a Secretary of State must submit a Beneficial Ownership Information Report (BOIR) with FinCEN (Financial Crimes Enforcement Network of the U.S. Treasury Department).

• Companies formed before January 1, 2024, must submit their FinCEN BOIR before the end of 2024.
• Companies formed in 2024 only have 90 days after the date of formation to submit their FinCEN BOIR.

Compliance with FinCEN’s BOIR requirements is not just a regulatory formality; it's a legal obligation that carries significant penalties for non-compliance.

The Stakes of Non-Compliance

Ignoring FinCEN BOI Reporting is risky and can result in severe consequences. Individuals that fail to comply may be subject to:

The potential financial and legal ramifications make it imperative to focus on FinCEN BOIR compliance.

Entity Reporting is Trending Upward and Here to Stay

If you believe FinCEN BOI Reporting is a temporary requirement that can be ignored, it's time to reconsider. States such as New York, Massachusetts, California, and Maryland are already implementing or preparing to enact legislation that mirrors or even expands upon FinCEN’s requirements. As you can see from the chart below, the current trends signal a clear shift towards regulations requiring the disclosure of beneficial owners at both the state and federal levels: