DID YOU KNOW?

As part of the Corporate Transparency Act, there are new requirements for certain businesses, known as “reporting companies,” to report information about their beneficial owners. Previously, financial institutions exclusively maintained beneficial ownership records. As of January 1, 2024, reporting companies are required to report this information directly to FinCEN.
 

WHAT ARE REPORTING COMPANIES?

• Corporations, LLCs and other entities “created by the filing of a document with the Secretary of State office.” In Vermont that includes LLPs, LTDs, LPs and MBEs.
• Certain business types are NOT required to report their beneficial ownership information, including: sole proprietors, non-profits, general partnerships, unincorporated associations, government authorities, municipalities, financial institutions, securities brokers, investment companies, and insurance companies.
• Please visit www.FinCEN.gov/BOI to determine your reporting requirements.

WHEN IS REPORTING REQUIRED?

• If an entity was created BEFORE January 1, 2024, the reporting must be completed by December 31, 2024.
• If an entity is created ON or AFTER January 1, 2024, the reporting must be completed within 90-days of the company creation.

WHO ARE BENEFICIAL OWNERS/COMPANY APPLICANTS?

• Beneficial Owners – 1) exercise “substantial control” over a reporting company or 2) own or control at least 25% of the ownership interest of a reporting company.
• Company Applicant – This is only required for companies created ON or AFTER January 1, 2024. The Company Applicant is the individual who filed the document(s) creating the reporting company OR the individual primarily responsible for directing/controlling the creation of the document(s) creating the reporting company.

WHAT INFORMATION MUST BE REPORTED?

• Reporting Company – full legal name, trade name(s), physical address, EIN for the company
• Beneficial Owner/Company Applicant – full legal name, date of birth, physical address, copy of non-expired government issued ID

HOW ARE REPORTS FILED?

The reporting database and all guidance, forms, FAQs can be found at www.FinCEN.gov/BOI.