Get started on your required Beneficial Ownership Information Report
As part of the Corporate Transparency Act, a new federal mandate requires that businesses file a Beneficial Ownership Information Report to avoid criminal and civil penalties. We can help you to file in a compliant and stress-free way. Starts at $50.
Why use Martinez Financial to file a Beneficial Ownership Information Report?
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What is Beneficial Ownership Information Reporting?
Beneficial Ownership Information Reporting is a process that requires certain entities to disclose information about their beneficial owners to the government. This information includes the identities of individuals who own or control the entity, as well as their personal information. The goal of this reporting is to increase transparency and prevent money laundering and other financial crimes.
Who is a beneficial owner?
A beneficial owner of a company is a person who enjoys the benefits of ownership even though the title to some form of property is in another name. This person has the right to use, sell, or otherwise dispose of the property, and may also receive income generated by the property. It is important to identify the beneficial owner of a company for legal and regulatory purposes.
What are the penalties for not filing?
Each business is responsible for filing a Beneficial Ownership Information Report which includes all of the individuals who control or own the business. However, a beneficial owner of a business who willfully fails to follow the reporting requirement and filing rules, or who misleads the Financial Crimes Enforcement Network, will face personal liability in the form of both criminal and civil penalties for noncompliance with the Corporate Transparency Act.
Failure to comply can lead to criminal penalties of imprisonment for up to two years and/or a fine of up to $10,000, and a civil penalty of up to $500 per day.
Even if a reporting company files the report on time, penalties can be imposed if the report does not include the correct information. It is critical that the reporting company’s filing is accurate. We can help you ensure accurate filing with a simplified reporting and filing process, satisfying the relevant law.
When is the Beneficial Ownership Information Report deadline?
The Beneficial Ownership Information Reporting Rule went into effect Jan. 1, 2024, so it’s important to get informed now about how to satisfy the requirements. The deadline varies depending on your date of formation, which we can help you determine, and we can help you stay on top of the process with notifications leading up to your filing deadline.
Generally, business entities formed before Jan. 1, 2024 will have until Dec. 31, 2024 to file. Business entities formed on or after Jan. 1, 2024 will have 90 days after formation to file. Business entities that amend their formation documents on or after Jan. 1, 2024 will have 30 days to submit a new report.
Taking care of this requirement will help you avoid criminal and civil penalties for failing to comply, including imprisonment for up to two years, a fine of up to $10,000, and/or a fine of up to $500 per day.
How are LLCs impacted by the Beneficial Ownership Information Reporting Rule?
Owners of a limited liability company (LLC) need to file the new report with the federal agency and provide basic contact information about the company and its owners (known as members). This requirement applies to single-member and multi-member LLCs.
Who is exempt from Beneficial Ownership Information Reporting?
Most small business entities are not exempt from this requirement. Entities that are exempt from beneficial ownership information reporting include publicly traded companies, tax-exempt nonprofit organizations, certain large operating companies, and others that meet specific requirements. The Financial Crimes Enforcement Network lists 23 types of exempt entities that do not qualify as reporting companies and certain individuals that can’t be listed as a beneficial owner under the reporting requirement.