Beneficial Ownership Reporting

If you’re a business owner, here’s something to pay attention to. The Corporate Transparency Act (CTA) has introduced a new requirement: beneficial ownership reporting. This is about transparency and accountability, and businesses that fail to comply could face financial penalties. It’s not optional, and the deadlines are fast approaching.

Here’s what you need to know about what beneficial ownership reporting is, why it matters, and how to ensure your business stays compliant.

What is Beneficial Ownership Reporting?

The government wants to ensure that businesses are transparent about who really owns and controls them. A beneficial owner is defined as anyone who:

• Owns or controls 25% or more of the company, OR

• Exercises significant control over the operations and decisions of the company.

Businesses are required to file information about their beneficial owners, including their:

• Full name

• Date of birth

• Residential or business address

• Unique ID number (such as a driver’s license or passport).

This information is submitted to FinCEN (Financial Crimes Enforcement Network) as part of the effort to reduce fraud, money laundering, and other financial crimes.

Who Needs to File?

If you run a Limited Liability Company (LLC) or a Corporation, this applies to you.

• Businesses created or registered before January 1, 2024, must file their initial report by January 1, 2025.

• For businesses registered after January 1, 2024, the report is due within 30 days of formation.

Don’t assume this doesn’t apply to you. This is a federal mandate, and compliance is required for most business entities registered in the United States.

Why Compliance is Critical:

Failing to file your beneficial ownership report comes with consequences. Noncompliance can lead to fines of up to $500 per day, adding up quickly and potentially harming your business financially.

Beyond the penalties, not filing could hurt your company’s reputation and ability to operate. Staying compliant protects your business, keeps you in good standing, and ensures you’re meeting federal requirements.

How MASH Can Help:

Navigating these new rules can be overwhelming, but you don’t have to do it alone. At Mid America Strategy Hub (MASH), we specialize in helping business owners like you stay on top of compliance requirements.

Our Beneficial Ownership Reporting Workshop is a free opportunity to:

• Learn the details of the reporting requirements and how to meet them.

• Get hands-on assistance with filing your report.

• Explore solutions for reinstating businesses that are delinquent or forfeited.

• Access valuable resources, like BMO’s Specialty Lending Program, designed to support minority-owned businesses.

Event Details:

Don’t wait until it’s too late to get compliant. Join us at our free workshop:

• Date: Saturday, December 14, 2024

• Time: 2 PM - 4 PM

• Location: BMO Downtown, 255 N Main St., Wichita, KS

What to Bring:

• Your EIN confirmation letter or Tax ID number

• Government-issued ID (driver’s license or passport)

• A laptop, tablet, or smartphone to complete the filing

Register today at mashtoday.com/workshops.

For more information about reporting requirements visit https://www.fincen.gov/boi-faqs.

Bryant Winn

Founder | Consultant