Beneficial Ownership Information Reporting (2024)

This blog post explains the new federal beneficial ownership reporting requirements for small businesses and provides key points for them to understand. It also highlights the assistance Ament Law Group can offer in navigating these new regulations.



12/29/20231 min read

person using laptop computer
person using laptop computer

Understanding Beneficial Ownership Reporting Requirements for Small Entities Many small business owners may be unaware of new federal reporting requirements for beneficial ownership that go into effect on January 1, 2024. The Financial Crimes Enforcement Network (FinCEN) recently published detailed guidance to help small entities comply with these new rules (link).

As a quick overview, certain corporations, limited liability companies (LLCs), and other similar entities will need to report information on their real owners or controllers, referred to as “beneficial owners,” to FinCEN. Beneficial owners generally include individuals who own or control at least 25% of the entity or who exercise substantial control over it in other ways.

Some key things small business owners should understand include:

  • Most small entities will need to file an initial beneficial ownership report by January 1, 2025. Newly formed entities in 2024 and beyond usually have to report within 30-90 days.

  • Information on two types of individuals must be reported: beneficial owners and possibly “company applicants” involved in an entity’s formation.

  • 23 categories of entities are exempt from reporting, like banks, public utilities, non-profits, and inactive companies. Your business may qualify for an exemption.

There are strict deadlines to update reports when the beneficial ownership information changes. Also, senior officers and others could face civil or criminal penalties if the business fails to comply with its reporting obligations.

The beneficial ownership reporting rules are complex. Ament Law Group can help small businesses:

  • Determine if they qualify as exempt from reporting

  • Identify beneficial owners and any required company applicants

  • Meet reporting deadlines and update requirements

We want to see small entities succeed. Contact us today to learn more and get the individualized guidance your business needs to meet its beneficial ownership compliance responsibilities.