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Small Business Reporting Requirements Starting in 2024

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New Federal Reporting Requirement for Beneficial Ownership Information

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Beginning January 1, 2024, certain types of corporations, limited liability companies, and other similar entities created in or registered to do business in the United States must report information about their beneficial owners—the persons who ultimately own or control the company—to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).  

Additional information about the reporting requirements, including answers to questions such as “is my company required to report beneficial ownership information to FinCEN,” “who is a beneficial owner,” and “when do I need to report my company’s beneficial ownership information" is available on FinCEN’s beneficial ownership information webpage, FinCEN.gov/BOI. You can also subscribe to FinCEN Updates for future guidance documents. 

According to FinCen, this new requirement is part of Congress’ “Corporate Transparency Act.” This law creates a beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. 

 

Who Has to Report? 

Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN. 

Your company may be a reporting company and need to report information about its beneficial owners if your company is: 

  1. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe ; or 

  2. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing. 

 

Who Does Not Have to Report? 

Twenty-three types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies, nonprofits, and certain large operating companies. 

FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether your company qualifies for an exemption. Please review Chapter 2.1 of the Guide for more information. 

How Do I Report? 

Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi 

  • The system will provide the filer with a confirmation of receipt once a completed report is filed with FinCEN. 

 

When Do I Report? 

Reports will be accepted starting on January 1, 2024. 

  • If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI. 

  • If your company is created or registered on or after January 1, 2024, you must report BOI within 30 days of notice of creation or registration. 

  • Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days. 

FinCEN cannot accept reports before January 1, 2024. 

Learn more about these requirements, and review informational materials, by visiting the dedicated webpage maintained by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) at www.fincen.gov/boi. 

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The Secretary of State's Commercial Recordings Division is the first stop for business licensing in Nevada. The Division is responsible for accepting, filing, maintaining and providing public access to the organizational and amendatory documents of business entities organized under the laws of Nevada. The Commercial Recordings Division also registers trade names, trademarks, service marks and rights of publicity. 

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