Clara provide tax, accounting or legal advise advise. You should consult a professional for advice on how to meet your obligations. Below is some general information.
U.S. Government regulations require that all entities should file a Beneficial Ownership Information Report ("BOI Report") with the Financial Crimes Enforcement Network of the U.S. Treasury ("FinCEN") within 90 days after the date of formation, unless the company falls under an exemption.
Background
Background
The Corporate Transparency Act (CTA) was enacted by Congress in 2020. The CTA empowers the Financial Crimes Enforcement Network (FINCEN) of the U.S. Treasury to collect disclosures of Beneficial Ownership Information (BOI) for many Corporations, LLCs and similar entities created in or registered to do business in the United States. Congress hopes that the law will help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity. The Corporate Transparency Act goes into effect on January 1, 2024.
BOI Report
BOI Report
For covered entities created or registered to do business on or after January 1, 2024, you must identify the individual who directly filed the document with specified governmental authorities that created the entity or registered it to do business, as well as the individual who was primarily responsible for directing or controlling such filing.
The Corporate Transparency Act also requires the company to disclose all Owners of the entity who own or controls 25% or more of the company or who exercise “substantial control” over the company in certain other ways.
The Company Applicant FinCEN ID will need to be included in the BOI report
A non-exempt reporting company must include in its BOI Report:
Its legal company name, and any trade name or Doing Business As (DBA);
Physical Business Address;
The Jurisdiction in which it was formed or first registered, depending on whether it’s a U.S. or foreign company; and
Its Taxpayer Identification Number (TIN).
The reporting company must also identify each of its beneficial owners and, for each of them, provide:
Full Legal Name
Birthdate
Home residential address
Unique Identifying Number from a Driver’s license ID or Passport
An image of the document that provide the unique identifying number
In addition, any reporting company formed (or registered to do business) on or after January 1, 2024, must also identify its “company applicant” and provide the five pieces of Personal Identifiable Information (PII) indicated above for the company applicant.
Determining whether your newly formed entity is exempt, and whether you need to file, is up to you and your legal advisors. If it is determined that the company needs to file a BOI Report, the Company Applicant FinCEN ID will need to be included in the BOI report.
Company Applicant FinCEN ID
Company Applicant FinCEN ID
When the company is incorporated, it is issued with a Company Applicant FinCEN ID number.
This can be found in the email from Clara confirming that the incorporation is complete. If you cannot find the number, please email [email protected] and we can share the ID number.
How to File the BOI Report
How to File the BOI Report
You can engage legal advisors to ensure you are compliant with the Corporate Transparency Act.
Alternatively, you can directly complete the initial BOI Report through FinCEN at www.fincen.gov/boi