Small Businesses Face New Reporting Deadline
An Important Update from Points West Community Bank
As a trusted partner to many local businesses, Points West Community Bank wants to ensure that all small business owners are aware of a recent regulatory change that may affect them. The Corporate Transparency Act (CTA), enacted in 2021, now requires most small businesses to file reports with the Financial Crimes Enforcement Network (FinCEN) regarding their beneficial ownership information. This mandate is part of the government’s effort to enhance transparency and combat financial crimes such as money laundering and terrorist financing.
Who Is Affected?
If your business is a corporation, LLC, or similar entity, this new law applies to you. Sole proprietorships, trusts, and certain exempt entities are not required to file.
What Information Is Required?
Businesses will need to provide a few pieces of information about the business itself, the beneficial owners, and the company applicants.
FinCEN has implemented these regulations to increase corporate transparency and reduce the abuse of anonymous shell companies. While many businesses may not be familiar with these requirements, it is crucial to understand that compliance with this law is mandatory.
Key Deadlines
Existing entities formed before January 1, 2024 must file their beneficial ownership reports by January 1, 2025. Entities created between January 1, 2024 and December 31, 2024 will have 90 days from their formation to comply. Entities created on or after January 1, 2025 will have 30 days from their formation to comply.
How to File
Filings can be made through FinCEN’s online reporting portal at www.fincen.gov/boi, and failure to comply could result in penalties, including fines. Points West Community Bank encourages you to consult your legal and accounting advisors for guidance on how to navigate this process. Filing is free of charge.
Our Commitment to Your Success
At Points West Community Bank, we are dedicated to supporting our small business customers through regulatory changes like this. We encourage you to reach out to your banker with any questions or visit FinCEN’s website at www.fincen.gov/boi for more information on how this filing might impact your business.
As always, we remain your partner in navigating these important changes while helping your business grow and thrive.