Own a Business? The FinCEN Deadline You Can't Ignore

If you own a business, you’re likely familiar with the legal structures used to operate it, like LLCs or S-Corps. But did you know a new law requires those businesses to be registered with the Financial Crimes Enforcement Network (FinCEN)?

Why is Registration Necessary?

FinCEN registration is a crucial part of the U.S. government’s efforts to combat financial crimes and money laundering. The information gathered helps law enforcement identify and track illicit activities, ensuring transparency and security in the financial system.

Who Needs to Register?

  • Business Entities: If you have an LLC,

  • S-Corp, C-Corp, or partnership, you are required to register.

  • Some Estate Planning Entities: LLCs created for estate or asset protection purposes (e.g., to hold real estate or other family assets) also fall under this requirement.

  • Anytime there are ownership changes

What is the Deadline?

For entities formed prior to Dec. 31, 2023, the deadline for registration is Dec. 31, 2024.

Failing to comply can result in substantial fines, so it’s important to take action now. The deadline to file a Beneficial Ownership Information (BOI) report under the Corporate Transparency Act (CTA) for entities formed in 2024 is 90 calendar days after the company receives notice of its creation or registration. This notice can be public or actual, whichever comes first.

Self-Reporting

You can self-report this information to FinCEN online at www.fincen.gov. Please make sure you are on an official government website and not a fishing website. Official government websites end in .gov. This is particularly important considering the personal information you will be providing to FinCEN.

Reporting on Your Behalf

Many business owners are choosing to have their CPA, lawyer, bookkeeper, or tax preparer complete this information. That is fine, but it will be important not only to confirm with them that they are filing but also communicate with them each time there is a change in ownership of a business that is required to register.

Questions? Give us a call: 913-385-9400.

Joseph Esry