ADAMS LAW USA
An Exclusive Asset Protection Law Firm for High Net Worth Individuals and Businesses
We represent you in the most important and essential financial area of your life… protecting your assets from current and future liability and loss.
NOTICE OF NEW MANDATORY REPORTING REQUIREMENTS UNDER THE CORPORATE TRANSPARENCY ACT (31 U.S.C. § 5336) for U.S. CORPORATIONS and LLC’s
Beneficial Ownership
What is a Beneficial Ownership Information Report and why do I have to file it?
As of January 1, 2024
The Corporate Transparency Act (CTA) (31 U.S.C. § 5336) mandates that most U.S. corporations, LLCs, and other entities report certain beneficial ownership information to the U.S. Financial Crimes Enforcement Network (FinCEN).
This requirement is part of the Corporate Transparency Act (CTA), aimed at increasing transparency and preventing illicit activities such as money laundering and fraud.
Understanding the Corporate Transparency Act
- Compliance with these reporting requirements is a legal obligation under Federal law and carries with it severe penalties for non-compliance. The new law states:
- “Each reporting company shall submit to FinCEN a report that contains the information described in subsection (b)(2) with respect to each beneficial owner of the reporting company. 31 U.S.C. § 5336(b)(1).”
- Subsection (b)(2) generally requires the reporting of unique information about the beneficial owners of the reporting company (31 U.S.C. § 5336(b)(2)(A)-(D)) and specific information about the identity and object of the company (31 U.S.C. § 5336(b)(2)(E)-(F)).
What are the penalties if I do not file a BOIR?
Introduction to Penalties
The Beneficial Ownership Information Reporting Rule came into effect on January 1, 2024. Under this rule, failure to file the required information can lead to severe penalties, including criminal and civil fines, and potential imprisonment.
It is crucial for companies to understand and adhere to these deadlines to avoid these penalties.
Criminal Penalties
Criminal penalties can include fines up to $500 for each day the violation continues, and imprisonment for up to 2 years.
Criminal Penalties for Willful Failure to File or Willfully Providing False Information:
Fines of up to $10,000
Imprisonment of up to 2 years.
Civil Penalties and Further Details
Civil penalties can include a fine of $500 per day for each day the violation continues.
Civil Penalties for Failure to File:
Up to $500 per day until the report is filed.
Inaccurate or Incomplete Reporting – Up to $500 per day until a corrected report is submitted.
TIME DEADLINES
For Companies Created Before January 1, 2024:
Companies that were created or registered before January 1, 2024, must file their beneficial ownership information this year (2024). 31 U.S.C. § 5336(b)(1)(B).
31 U.S.C. § 5336(b)(1)(B)
For Companies Created After January 1, 2024:
Companies created or registered on or after January 1, 2024, must file their beneficial ownership information within 30 days of their creation or registration. This requires immediate attention to ensure compliance from the outset.
31 U.S.C. § 5336(b)(1)(A)
File your BOI Report in only Three Steps With Adams Law USA
“Step 1 – Gather Information”
Gather Information
You will need to provide certain relevant information. This includes company details, information regarding the beneficial owners, and possibly the company applicant’s details.
To file your Beneficial Ownership Information (BOI) report, you will need to gather specific information about your company and its beneficial owners. Here’s a detailed list of the required information:
Copies of Identification Documents:
Copies of government-issued identification documents for each beneficial owner (e.g., driver’s license, passport).
Ownership Documentation:
Any documentation that verifies the ownership or control interests of each beneficial owner (e.g., stock certificates, LLC membership agreements).
Contact Information:
Contact details for each beneficial owner, including phone numbers and email addresses
Company Name: The full legal name of the company.
Address: The principal business address of the company.
Entity Type: The type of entity (e.g., corporation, LLC, partnership).
Jurisdiction: The state or country where the company is legally registered.
Registration Number: The identification number assigned to the company by the State of incorporation
Date of Formation: The date when the company was formed or incorporated.
Full Legal Name: The full legal name of each beneficial owner owning at least 25% of company.
Date of Birth: The date of birth of each beneficial owner.
Residential Address: The residential address of each beneficial owner.
Nationality: The nationality or citizenship of each beneficial owner.
Identification Number: A government-issued identification number (e.g., Social Security Number, passport number).
A short description of the nature and extent of the beneficial ownership or control each individual has over the company (e.g., percentage of ownership, control through other means).
“Step 2 - Complete Our Short Questionnaire”
Complete Our Short Questionnaire
Click the “File BOI Report Now” button and use the information you’ve collected to complete the questionnaire. We make this easy by guiding you each step of the way.
If you have any questions after completing the questionnaire, or have any concerns while filling out the questionnaire, please email us at BOIR@adamslawusa.com.
“Step 3 - We Submit Your Report and Contact You with Follow-Up”
We Submit Your Report and Contact You with Follow-Up
We contact The Financial Crimes Enforcement Network (FinCEN) which is a bureau of the U.S. Department of the Treasury on your behalf and ensure that everything is handled correctly
We monitor the status of your application online and forward to you confirmation of filing or any other matters outstanding. BOIR@adamslawusa.com.
