Posted by Kevin Aumack, MackBooks LLC
🛑 Update – March 21, 2025:
As of March 21, 2025, FinCEN has removed the Beneficial Ownership Information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act.
Under the newly issued interim final rule, only foreign entities registered to do business in the U.S. are now required to file BOI reports — and domestic entities are fully exempt.
If your business was formed in the United States, you are no longer required to submit a BOI report to FinCEN.
For full details, refer to the official FinCEN announcement and the Interim Final Rule. 🛑
If you own a small business or manage an LLC, there’s a new law you need to know about—and it’s not just legal fine print. The Corporate Transparency Act (CTA) went into effect on January 1, 2024, and it requires many small businesses to file a new type of report with the federal government. Let’s break it down so you know exactly what this means for you.
What Is the Corporate Transparency Act?
The CTA is a federal law passed to combat money laundering, fraud, and other illicit activities that can hide behind anonymous shell companies. It requires certain U.S. businesses to disclose information about their “beneficial owners”—the individuals who ultimately own or control the company.
The information is submitted to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury. This is not a tax filing, and it’s not public information. But failing to file correctly could result in penalties.
Who Needs to File?
Most small businesses formed through a state registration process—like LLCs, corporations, and similar entities—will be required to file unless they qualify for an exemption.
That means if you’re a small business owner or entrepreneur, you likely need to comply.
Exemptions include:
- Large operating companies (20+ full-time employees AND $5M+ in U.S. revenue)
- Certain regulated entities like banks or insurance companies
- Inactive entities (meeting specific criteria)
What Information Is Required?
You’ll need to report:
- Business Information: Legal name, address, state of formation, and EIN.
- Beneficial Owners: For each owner with 25%+ ownership or significant control:
- Full legal name
- Date of birth
- Residential address
- A copy of an acceptable ID (driver’s license or passport)
New companies formed in 2024 must also report their “company applicants”—the person(s) who helped form the business.
What Are the Deadlines?
- Existing Businesses (formed before Jan 1, 2024):
Must file by January 1, 2025 - New Businesses (formed in 2024):
Must file within 90 days of formation - Changes in Ownership or Info:
Must be reported within 30 days of the change
What Happens If You Don’t File?
Penalties are steep:
- $500 per day for each day of noncompliance
- Possible criminal charges, including fines up to $10,000 and jail time
This is not something to ignore.
How to File
All filings are done electronically through FinCEN’s website:
➡️ https://www.fincen.gov/boi
There’s no fee to file, and you can complete it yourself or have a trusted advisor help you.
How MackBooks Can Help
Navigating government filings can feel overwhelming, especially when it’s something new. At MackBooks, we’re here to help small business owners stay compliant while keeping things simple. If you’re unsure whether the CTA applies to your business or want help organizing your documentation, reach out today for personalized support.
đź“©Â kevin@aumackbookkeeping.com
đź“ž (856) 208-7545
Stay compliant. Stay focused. Let MackBooks handle the books so you can build the business.
