Representative Lizzie Fletcher

Dear Neighbor,

In 2021, Congress enacted the Corporate Transparency Act (CTA), bipartisan legislation that requires many companies to report information about their ownership. This beneficial ownership information reporting requirement is overseen by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. This law is part of the U.S. government’s broader efforts to make it harder for bad actors to hide or benefit from ill-gotten gains.

Last week, I hosted an event with FinCEN leaders to go over what is required. I want to share what we learned and make sure we get this information to as many as people as possible.

Beneficial Ownership information reporting should take small businesses with simple ownership structures no more than 20 minutes to fill out. it is simple, secure, and free of charge. This is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. Below are resources and frequently asked question to ensure that your company is in compliance with the requirements.

Who has to report?

A corporation, a limited liability company (LLC), or otherwise created in the United States by filing a document with the secretary of state or any similar office under the law or state or Indian tribe.
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, including publicly traded companies, nonprofits, and certain large operating companies. You can go to FinCEN.gov to learn more about the exemptions.

Where do I report?

Filing can be done online at BOI E-Filing. Filing is simple, secure, and free of charge. Additionally, beneficial ownership information reporting is not an annual requirement, and only needs to be submitted once, unless the filer needs to update or correct information.

When do I report?

Reporting companies created or registered before January 1, 2024, have until January 1, 2025, to file.
Reporting companies created or registered in 2024 must file within 90 calendar days after receiving actual or public notice that their creation or registration is effective, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, must file within 30 calendar days after receiving actual or public notice that their creation or registration is effective.
Any updates or corrections to beneficial ownership information previously filed with FinCEN must be submitted within 30 days.

Detailed information, FAQs, and resources are available on FinCEN’s Website. FinCEN has a team to help with the many questions that may arise from this new process. And our TX-07 team is here, too.

Sincerely,