IMPORTANT: Federal Law Reporting Alert

Federal capital building in Washington DC

Federal Law Reporting Deadlines

If you are a business owner (corporations, LLCs, partnerships), it is crucial that you familiarize yourself with the new federal law reporting obligations that should not be overlooked. Failure to comply can result in substantial penalties. You are required to submit a beneficial ownership information report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, within a limited timeframe.

Federal Law Background

In January of 2021, the bipartisan Corporate Transparency Act was enacted to curb illicit finance such as money laundering and the concealment of illicit funds. Because of this act, many companies–even small businesses–need to file the beneficial ownership report to FinCEN or face extremely stiff penalties.

Penalties for Non-Compliance

Your business could occur fees up to $500 a day (up to $10,000) and two years in jail if you fail to comply or intentionally or unintentionally provide incorrect information. And since new businesses must file 90 days after receiving actual or public notice that their company’s creation or registration is effective, those companies formed in January need to act immediately.

man at desk in front of a laptop with his head in his hands

Filing the Beneficial Ownership Information Report

You can find the form on the FinCEN website (www.fincel.gov). It is important to note that many business owners find it difficult to complete the online form correctly. We cannot stress enough how important it is that businesses avoid completing this form on their own and risk making errors which can lead to disastrous consequences. This is why we feel that you should seek guidance from a business law attorney, Ronald J. Axelrod in Rochester, NY, to assist you in filing this report and ensuring that it is completed properly.

IMPORTANT DEADLINES

Companies required to report must file electronically online at www.FinCEN.gov by the following deadlines:



Existing Companies

Reporting companies created or registered to do business in the United States before January 1, 2024, must file by January 1, 2025.

Newly Created or Registered Companies

Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

Important: Newly formed LLCs or corporations created in the early months of 2024 have a very limited number of days to file or face stiff penalties.

Conclusion

Ron Axelrod, business law attorney in Rochester, NY, does not want to see his clients miss important deadlines, make any errors when filing or face disastrous penalties–especially those new businesses that were formed early in 2024. Please get in touch with Ronald J. Axelrod & Associates at your earliest convenience. We’re here to help walk you through the process and answer any questions that you may have. Call (585) 203-1020 or contact us through our website.