Navigating Financial regulations can be confusing, the new beneficial owner reporting requirements are no exception. In this article we will briefly explain the new Beneficial Ownership Information (BOI) reporting requirements of the Corporate Transparency Act (CTA) and define the FinCEN Identifier (FinCEN ID), who needs one, and why it is recommended.

Beginning January 1, 2023, the Financial Crimes Enforcement Network (FinCEN), requires certain companies to report information about the individuals who ultimately own or control them.

Domestic reporting companies include corporations, limited liability companies, and any other entities created by the filing with a secretary of state or any similar office in the United States.

What are the FinCEN reporting requirements for 2024?

• Reporting companies created or registered on or after Jan. 1, 2024, and before Jan. 1, 2025, will have 90 calendar days from the date they receive actual or public notice that their company’s creation or registration is effective to file their initial BOI (Beneficial Owner Information) report.
• Reporting companies in existence prior to Jan. 1, 2024 have until Dec. 31, 2024 to file their BOI report.

Who is a Beneficial Owner of a Reporting Company?

A beneficial owner is an individual who either directly or indirectly: exercises substantial control over a reporting company or owns at least 25 percent of a reporting company’s ownership interests. Beneficial owners must be individuals (i.e., natural persons). Trusts, corporations, or other legal entities are not considered to be beneficial owners. However, in specific circumstances, information about an entity may be reported in lieu of information about a beneficial owner.

Why Should a bBneficial Owner Obtain a FinCen Identifier?

Each entity that you are a beneficial owner of needs to report your name, address, date of birth and supply a official form of identification (i.e. drivers license or passport).  The option to providing all this personal information is to obtain an individual FinCen number.

A FinCen identifier establishes your personal information within the agency.  You then supply that ID number to any entity that you are required to file with.  There is no need for you to provide your driver’s license or any other identification to the entity.  If you move your personal residence in the future, you log back into the FinCen website and change your address.  The system updates all filings your ID number is associated with.  By obtaining an individual FinCen identification number, personal identification information does not need to be shared with the entity or the firm filing the FinCen report for the entity.

How Do I Request a FinCEN Identifier?

For individuals only, requests for a FinCEN identifier started January 1, 2024, and can be done by completing an electronic web form at https://fincenid.fincen.gov. You will need to provide your full legal name, date of birth, address, unique identifying number and issuing jurisdiction from an acceptable identification document, and an image of the identification document (this can be your driver’s license or passport). You will immediately receive a unique FinCEN identifier after you submit this information.

For entities only, the reporting company may request a FinCEN identifier by checking a box on the beneficial ownership information report upon submission of its initial BOI report. After the reporting company submits the report, the company will immediately receive a unique FinCEN identifier. If a reporting company wishes to request a FinCEN identifier after submitting its initial beneficial ownership report, it may submit an updated beneficial ownership information report requesting a FinCEN identifier, even if the company does not otherwise need to update its information.  We highly recommend requesting the business FinCen number.

In conclusion, obtaining a FinCEN ID is optional, but if one has multiple entities on which they need to report Beneficial Ownership, a FinCEN ID will simplify the process.

If you have questions or need assistance understanding how to obtain a FinCEN ID, please contact our office at 203-489-0612.