Beginning January 2024, most LLCs and corporations will have to submit a Beneficial Ownership Report to the U.S. government as part of a federal anti-money-laundering initiative.
Most LLCs and corporations will have to file a Beneficial Ownership Report. There are exemptions which likely have nothing to do with your business.
A report identifying beneficial owners and key decision makers. You'll provide the name and home address for each as well as a copy of an identifying document like a passport or driver's license. A note from your mother doesn't count.
A beneficial owner is ANY of the following:
Owners of 25% or more of the entity
Senior officers (like CEOs)
Anyone who can appoint or remove officers or a majority of directors
Key decision makers
Anyone else who exercises substantial control over the entity
Entities formed before January 1, 2024 must submit their initial BORs by January 1, 2025. Entities formed on or after January 1, 2024 must file their initial BORs within 30 days of the date of registration.
Beginning January 1, 2024, new entities must submit the report within 30 days of formation and include the identity of the person responsible for filing the formation documents.
If the information on your report changes, you have 30 days to update it by filing an amended report.
There are potentially steep fines for noncompliance.