BEMA International nonprofit, and organization members
Please
consider your filing information starting January 2024.
BEMA
International
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Upcoming
changes brought about by the
- Corporate
Transparency Act and its impact on millions of small businesses.
Starting January 1, 2024, the
- Financial
Crimes Enforcement Network (FinCEN),
in
an effort to crack down on criminals and other bad actors laundering
illicit funds through the United States using shell and front companies,
will institute a reporting requirement that identifies two categories of
individuals: the beneficial owners of a newly formed entity (or
Reporting Company) , and individuals who have filed an application with
specified governmental authorities to create the entity or register it to
do business (Company Applicant).
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Which types of organizations are considered reporting
companies?
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The
final rule states that BOI Reports must be filed by domestic reporting
companies and foreign reporting companies.
A
domestic reporting company is defined as an entity that is a
corporation, LLC, or other entity created by filing documents with a
secretary of state or similar office under state or tribal laws.
A
foreign reporting company is an entity created under foreign law and
registered to do business in the US by filing documents with a
secretary of state or similar office.
Please
note that certain entities are exempt from being considered "Reporting
Companies."
These
include entities such as securities reporting issuers, governmental
authorities, banks, credit unions, and others listed in the final rule.
Understanding
whether your entity needs to file a Beneficial Ownership Information Report
involves a two-step process: determining the entity's classification and
then checking if it falls within the exemptions outlined by the Corporate
Transparency Act and FinCEN regulations.
ALLl
individuals owning, managing, or advising entities are encouraged to review
these requirements and exemptions before January 1, 2024.
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How is Beneficial Owner defined?
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A
"Beneficial Owner" of a Reporting Company is any individual who
directly or indirectly exercises substantial control over the company or
owns or controls at least 25 percent of the ownership interests of such
Reporting Company.
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How is Company Applicant defined?
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FinCEN
will collect the information for 2 Company Applicants at most for any BOI
Report.
The
Company Applicant will always be the individual who directly files the
document that creates the Reporting Company (or for foreign reporting
companies, it's the individual who directly files the document that first
registers the Reporting Company).
For
both domestic and foreign Reporting Company scenarios, if there is a
secondary individual primarily responsible for directing or controlling the
filing, such individual is also considered a Company Applicant.
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bEMA International
Washington, D.C. 20020
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Cooperation, Collaboration,
Communication, Coordination, Community engagement, and Partnering (C5&P)
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A 501 (c) 3 organization
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