Update as of December 2024: The Beneficial Ownership Filing is no longer required as of now. A judge in Texas has issued a preliminary injunction against enforcement of the CTA nationwide, meaning that businesses are not currently required to file by January 1, 2025. However, this is a developing matter that may be subject to change. If you have already filed, not to worry. No other action is required by you at this time.
If you haven’t already filed, you may have additional time beyond January 1, 2025. Given these uncertainties, companies should consider proceeding with any analysis necessary to determine whether they are required to make any CTA filings and gather the necessary information to file promptly if the preliminary injunction does not remain in effect through the end of the year.
Effective January 1, 2024, many companies in the United States must report information about their beneficial owners—the individuals who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
Filing is simple, secure, and free of charge. Beneficial ownership information reporting is currently not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once.
At its core, beneficial ownership refers to the natural persons or entities that ultimately own or control a business. This concept plays a crucial role in financial transparency and combating illicit activities like money laundering and terrorism financing.
For small business owners, understanding beneficial ownership is typically the first step towards ensuring compliance with global regulatory requirements. It's about identifying who holds the decision-making power and financial interest in your company.
Download our guide to learn more about how to file this important document, and how you may be able to leverage it to build success for your small business:
