Ensure You and Your Small Business Clients are Aware of New Federal Reporting Requirements

Many small businesses are now subject to the Federal Beneficial Ownership Information (BOI) Reporting Rule, a result of the enacted Corporate Transparency Act. The rule seeks to gather information about ownership interests in corporations and other business entities. In general, entities that existed prior to January 1, 2024 and are subject to reporting will have until January 1, 2025 to submit the required report. Additionally, for new entities formed on or after January 1, 2024, reporting will be required within 90 days.

Beginning January 1, 2024, FinCEN will begin accepting reports from entities subject to the Rule. The BOI website has a wealth of information, including a Small Entity Compliance Guide—available in several languages—to guide you and your clients. Take care to make sure you know whether your firm is a business that must comply. Likewise, your business clients may need your guidance on their reporting obligations.