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With Cleer Tax in your corner, never worry about being caught off guard with new reporting requirements.
Cleer Tax has been helping companies like yours with foreign bank account reporting requirements for years, so we’re uniquely positioned to be able to support with the new (confusing and onerous) FinCEN Beneficial Ownership Reporting regulations. Our expert teams knows how to navigate them so you’re compliant and can avoid steep penalties.
Starting in 2024, U.S. companies must report individuals who either significantly control or own 25% or more of a company as part of FinCEN’s Beneficial Ownership reporting.
This new mandate applies to entities both created in or registered to conduct business in the U.S. This is a reporting requirement, not a tax, but it carries stiff penalties if you don’t file!
Companies established or registered before January 1, 2024, have until January 1, 2025, to submit initial reports, whereas entities formed after this date have 30 days post-registration to submit the necessary filing with FinCen. Willful failure to file can lead to penalties of $500 for each day the violation continues. Not sure how to proceed? Simply buy the subscription below and our advisors can take care of all the paperwork for you.
Under FinCEN’s updated rule, reporting responsibilities are focused on corporations, LLCs, or entities formed by filing with the secretary of state or similar offices. This is a change from the previous rule, which included all corporations, LLCs, and partnerships.
Starting January 2024, exemptions include large operating companies, tax-exempt organizations like 501(c)(3) entities, and inactive companies meeting specific criteria, such as no recent ownership changes or minimal financial activities.
A beneficial owner is now more clearly defined as someone like a senior officer (CEO, CFO), someone with authority to appoint or remove key officers, a significant decision-maker, or anyone with substantial control over the company.
The individual responsible for the initial filing or registration of the company, such as an attorney or accountant, is identified as the ‘company applicant.’ This reporting is necessary for companies created in the U.S. on or after January 1, 2024.
The information will include the company name, address and tax ID number. The Beneficial Owner information that will be collected will include names, addresses, date of birth, an identification number from an official document such as a U.S. driver’s license or a passport and a copy of the identification document. More information can be found on the FinCEN website here.
Cleer Tax provides flat-rate accounting services for U.S. startups, often with foreign ownership, and growing businesses, to do it right from the start. Our all-inclusive accounting packages provide tax preparation, and bookkeeping to fit any budget and growth stage. Our tech-forward, streamlined process provides the Cleer path to success for your startup.
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