Beneficial Ownership Information
The 2021 Corporate Transparency Act requires certain domestic and foreign entities to register their businesses with FinCEN, or face steep fines and possible jail time.
overview
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.
Very few U.S. states or territories require companies to disclose information about their beneficial owners—the individuals who own or control companies. This lack of transparency allows criminals, corrupt officials, and other bad actors to hide their identities and launder illicit funds through the United States using shell and front companies. This in turn hurts ordinary Americans because the lack of transparency results in an uneven playing field for honest and legitimate U.S. businesses. The inaccessibility of beneficial ownership information also makes it hard for law enforcement to track and prosecute criminal activity.
penalties for failure to report
Willfully failing to file a BOI Report or willfully providing false information on a BOI Report can result in a criminal fine of up to $10,000 and/or two years imprisonment. Penalties can apply to beneficial owners and/or to the officers of the company, depending on the type of violation.