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How do you comply with FinCEN's Beneficial Ownership Information regulation?

All small business owners are required to register with FinCEN in 2024.  FinCEN is the Financial Crimes Enforcement Network.  These regulations come as a result of the Corporate Transparency Act which passed in 2021.  The goal of this regulation is to “crack down on attempts by “criminals, organized crime rings, and other illicit actors to hide their identities and launder their money through the financial system,” according to Treasury Secretary Janet Yellen.

Now, what does this mean for your small business?

Basically you’re going to have to file a form with FinCEN that details your business's “Beneficial Ownership Information.”  This information essentially details who the owner/beneficial party of the business operation is.  The owners and part-owners of those businesses must register personal information with FinCEN, such as a photo ID and home address.

The BOI form will be available on January 1st 2024, and the deadline for filing is January 1st 2025.  Penalties for failing to do so can run as high as $10,000.  It’s worth noting that all Alps Bookkeeping clients will be assisted in the filing of this form.  Additionally, all new businesses that are created after Jan. 1 2024 will have only 90 days to comply with the regulation.

There are some exemptions for businesses with more than 20 employees and more than $5 million in sales.  Still, this leaves an estimated 32 million small businesses that aren’t exempt. 

Please reach out with any comments or questions!

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