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: