Important regulation change: U.S. LLC entrepreneurs must comply with new Corporate transparency law

The Financial Crimes Enforcement Network (FINCEN) of the U.S. Department of the Treasury has implemented a new measure that will impact all entrepreneurs with LLCs in the country starting January 1, 2024. It involves the registration of Beneficial Ownership Information (BOI), required by the bipartisan Corporate Transparency Act enacted in 2021 to curb illicit finances. 

 The regulation requires U.S.-based businesses to report on the identity of individuals who ultimately own or control them. Penalties for not registering a company within the specified deadlines are severe, with fines of $500 per day of non-compliance and potential imprisonment for up to 3 years. 

 The news has surprised the business world, especially small entrepreneurs who will be affected by this new obligation. "It will be a new obstacle to overcome when doing business in the United States," commented Armando (Anonymous), an entrepreneur from Houston, Texas. 

 Affected companies must submit initial reports according to the established deadlines: those existing before January 1, 2024, must register their information before January 1, 2025, while companies newly created or registered in 2024 have 90 calendar days to submit after receiving notification of the effectiveness of their creation or registration.  

The required information includes the name of each owner, date of birth, address, and details of the identification document. Additionally, reporting companies created after January 1, 2024, must provide information about the individuals who formed the company. FINCEN claims to be committed to providing small businesses with the necessary resources to make filing quick and easy. There are exceptions for companies with more than 20 employees on the payroll and annual earnings exceeding $5 million. 

 In addition to fines imposed by FINCEN, entrepreneurs failing to meet these requirements risk banking implications, as no financial institution will provide services to non-compliant companies under federal law.  

Take Action Now! Comply with the New Regulations to Avoid Sanctions  

If you own a company with an LLC in the United States, it is crucial to take immediate steps to comply with the new regulations of the Financial Crimes Enforcement Network (FINCEN). Avoid daily fines of $500 and potential prison sentences by registering your Beneficial Ownership Information (BOI) before the specified deadlines. Quick and Easy Steps: 

Check the applicable deadlines for your company. 

Gather the necessary information about beneficial owners. 

Access FINCEN's Compliance Guide for Small Entities at www.fincen.gov/boi for assistance. 

Submit your BOI registration securely and free of charge. Remember, non-compliance not only results in financial sanctions but also banking risks. Protect your business and avoid future complications! For more information and resources, visit www.fincen.gov/boi. 

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