By Dakota West Credit Union
In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. As of January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Each business is obligated to determine whether or not they are required to report information about their beneficial owners and to accurately report the required information. The links below to the Small Entity Compliance Guide and FinCEN’s Beneficial Ownership FAQ can assist you in determining if you need to file, how to file, and what information is required. You can also click on the Report Beneficial Ownership link to go directly to FinCEN’s reporting site.