On Sept. 19, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a toolkit to help small business owners become more familiar with beneficial ownership reporting requirements. 

"The toolkit furthers FinCEN’s outreach efforts to inform small businesses of the reporting requirements," FinCen said in a release. The agency also noted that the Corporate Transparency Act mandated these reporting requirements. The act is a bipartisan law enacted to stop illicit finance by supporting law enforcement efforts. Under the law, many small businesses must report basic information to the federal government regarding the individuals who ultimately own or control them.

The beneficial ownership information (BOI) toolkit has templates and sample content structured to permit private, public, and nonprofit organizations to share and amplify this information.

It also includes a general background on the reporting requirements and templates for newsletters, websites and emails; sample social media posts and images; and information about contacting FinCEN.

Aside from the BOI toolkit, the agency has promoted many initiatives that reach out to small businesses. For example, FinCEN has issued guidance, FAQs, videos, and other materials for easy compliance. Additionally, senior FinCEN officials have been meeting with with small business owners and other key stakeholders nationwide to help small businesses fulfill their reporting requirements.

According to FinCEN, filing is quick, secure and free of charge. It is also not an annual requirement unless a firm needs to update or correct information. 

Accounting Today reported that FinCEN started accepting the beneficial ownership information reports in January 2024.

FinCEN anticipates that most companies will be able to file without the help of an attorney or accountant and that the filing process for those with simple ownership structures might take 20 minutes or less. Firms that existed before 2024 have until Jan. 1, 2025 to file. 

Companies created or registered in 2024 must file within 90 days of receiving their creation and registration notice. Additional information and FinCEN’s E-Filing System are available at https://www.fincen.gov/boi.