Acting under the authority granted by the 2021 Corporate Transparency Act, the Financial Crimes Enforcement Network (FinCEN) has promulgated a new requirement affecting LLC’s, small businesses, and larger for-profit corporate entities. These entities must report their “Beneficial Ownership Interests” (BOI), which consists of the individuals or other corporate entities which have an ownership interest in the company. This requirement went into effect on January 1st of this year.
All companies which existed prior to January 1, 2024, have until January 1, 2025, to register this information. Newly created businesses after January 1, 2024, will have ninety days to report this information. This is a federal requirement, not a state-level provision, and this information must be supplied to FinCEN, separately from any materials requested or required by the Oregon’s Secretary of State in the normal course of registering and operating a business.
FinCEN has created an electronic filing system to handle these reports, and there are a few types of business structures which are exempt from this requirement. The majority of for-profit corporations and business types, though, are subject to this new reporting requirement, and must file this information, either before the end of this calendar year, or within ninety days of registering their business with the Secretary of State.
For more information about this reporting requirement, and to consult an attorney on what this requirement means and how to satisfy it, please contact our office for additional information, or consult the FAQ prepared by FinCEN at: https://www.fincen.gov/boi-faqs#B_2.
Photo by Brooke Cagle on Unsplash
