New financial reporting requirements for businesses in 2024

Starting January 1, 2024, there are new financial reporting requirements for businesses that you should be aware of.

Beneficial Ownership Reporting: Companies are now required to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This includes details about individuals who ultimately own or control the company1.

1. Compliance Guide for Small Businesses: FinCEN has published a Small Entity Compliance Guide to assist small businesses in understanding and complying with the beneficial ownership information reporting rule2.

2. Corporate Transparency Act (CTA) Requirements: Under the CTA, every reporting company must report certain information about itself, its beneficial owners, and company applicants to FinCEN3.

3. Mandatory Reporting for New Entities: Newly established corporations, LLCs, limited partnerships, and other entities must file comprehensive reports with FinCEN, disclosing information about their beneficial owners4.

4. Reporting Deadlines:

• Newly formed entities must submit an initial report to FinCEN within 30 days.

• Existing entities (as of December 31, 2023) have until December 31, 2024, to submit their initial report.

• Changes in beneficial ownership must be reported within 30 days of the change5.

These changes are part of a broader effort to increase transparency and combat financial crimes. It’s important for businesses to prepare for these new requirements to ensure compliance. For further details, you may want to consult with a financial advisor or legal counsel who specializes in corporate law and financial regulations.