Beneficial Ownership Information Report

The Beneficial Ownership Information filing requirement is new and complex. We will help you navigate its regulations — and submit all beneficial owner reporting to FinCEN.

What is the Beneficial Ownership Information Report?

Effective as of January 2024, the Corporate Transparency Act (CTA) requires U.S. businesses, including corporations and LLCs to report information about their beneficial owners — individuals who own 25% or more of the company, or control substantial company interests in what has become known as the Beneficial Ownership Information Report.

The legislation aims to enhance transparency and combat money laundering, terrorism financing, and other illicit activities. 

Frequently asked questions

Okay, what does this new legislation mean for me?

It means you will be required to submit additional reports to federal authorities, with information about your company’s beneficial owners.

When do companies have to file?

Any company created before January 1, 2024 must file a report by January 1, 2025.Any company created after January 1, 2024 must file a report within 90 calendar days of receiving notice of their registration or creation.Starting January 1, 2025, companies will have only 30 calendar days to submit this report.

How does DBO help with this?

We handle all your CTA reporting needs for each of your entities — correctly, and on time — to ensure that you stay fully compliant.
Our team has closely monitored the implementation of CTA to see exactly how it affects our clients, and which reporting is required.

What type of companies will be required to send this filing?

Any company defined as a “reporting company” — which includes corporations, limited liability companies (LLCs), and similar entities that are created by the filing of a document with a secretary of state or a similar office under the laws of a U.S. state or Indian Tribe.

Are there any exemptions?

Yes, but the majority of companies will be required to submit this report. Publicly traded companies, certain financial institutions, and other types of entities may be exempt from the reporting requirements. In total, there are 23 exemptions outlined in the legislation’s final rule.

Reach out to us anytime to see if you are required to file.

What is a “beneficial owner”?

Individuals who
• Own 25% or more of the interests in a company —  either directly or indirectly            
• Individuals who exercise substantial control over a company.

Which government agency will be receiving this information?

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

What are the penalties for failure to file?

$500 per day civil penalty, $10,000 fine, or 2 years imprisonment.

Is there any grace period?

Yes, there is a 90-day safe harbor.

CTA compliance is new and complex.

Let us manage that burden.
Our team has an extensive grasp of the Corporate Transparency Act and its many requirements. We will file and submit your CTA reports carefully and on time, ensuring full compliance and zero penalties.