information U.S. Businesses and businesses operating in the U.S. are now required to file for a FinCEN ID from the Department of Treasury

[Eric Lyon]

You read the title right.

Starting Jan 1st 2024 all businesses operating in the U.S. who filed with a state (LLC, S-Corp, Etc.), must now file with the "Financial Crimes Enforcement Network" (A division of the Department of Treasury).

I just finished filing mine for Scorpion Agency LLC:

Here's more information about FinCEN:

Many companies are required to report information to FinCEN about the individuals who ultimately own or control them.

FinCEN began accepting reports on January 1, 2024.

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://boiefiling.fincen.gov) on January 1, 2024.

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
• A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
• A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

Companies required to report are called reporting companies. There are two types of reporting companies:

• Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
• Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.

There are 23 types of entities that are exempt from the reporting requirements (see Question C.2). Carefully review the qualifying criteria before concluding that your company is exempt.

FinCEN’s Small Entity Compliance Guide for beneficial ownership information reporting includes the following flowchart to help identify if a company is a reporting company (see Chapter 1.1, “Is my company a “reporting company”?”).

Full FinCEN FAQ
e-File FinCEN Here

I know a lot of members on NamePros have LLC's or S-Corps, so I figured I would share this in case you haven't encountered it yet. I was alerted to it right after filing my Taxes and renewing my Texas State Franchise Tax that the Federal Government now requires additional filing for FinCEN.

I figured I should get my filing done to avoid any issues later down the line with the Treasury department.

Has anyone else filed for their FinCEN ID yet?

 

[The Durfer]

sole proprietors also? hobbyist making profit?

 

[Eric Lyon]

sole proprietors also? hobbyist making profit?

Unfortunately, yes.. if you filed anything with the secretary of state in a u.s. state to do business as an entity, you'll need to file a BOI as well, federally.

I also had to file a new state level BOI in addition to Federal where i filed my LLC.

Texas discontinued the franchise tax form and switched to a BOI form just like the Federal one, but less complex to file.

 

[The Durfer]

done.

 

[Eric Lyon]

done.

Right on! Staying ahead of the game.

There's probably lots of people that may not realize the change until they get the notices in the mail.

Older LLCs and Corps established prior to Jan 1st 2024 technically have until Jan 2025 to file.

So, I have a feeling most of those will be last minute filings or fined.

Larger Corps Finance departments probably already have it done, but the smaller mom and pop operations may run late to the ball game, unfortunately.

 

[The Durfer]

Right on! Staying ahead of the game.

There's probably lots of people that may not realize the change until they get the notices in the mail.

Older LLCs and Corps established prior to Jan 1st 2024 technically have until Jan 2025 to file.

So, I have a feeling most of those will be last minute filings or fined.

Larger Corps Finance departments probably already have it done, but the smaller mom and pop operations may run late to the ball game, unfortunately.

Hope you dont mind, i just let truckers report forum know as well and referenced your thread. ty.

 

[Eric Lyon]

Hope you dont mind, i just let truckers report forum know as well and referenced your thread. ty.

It's all good. I don't mind, but the threads in the insiders lounge are only accessible to VIP, Pro, and Gold NamePros members.

 

[Eric Lyon]

Added note: I'm reporting this thread to have it moved to the Public Legal Section of NamePros, so more people can be made aware of it in time to do their own research.

That will also allow your reference link over at Truckers Report to access it on NamePros.

 

[Eric Lyon]

Here they come: $100,000 fine/penalty went to "Gyanendra Kumar Asre" for failure to register their financial related business with FinCEN and not implementing better security controls for the services offered.

“Asre allowed millions of dollars in high-risk transactions to be processed without required anti-money laundering controls or reporting to FinCEN,” said FinCEN Director Andrea Gacki. “Today’s action serves as a reminder that FinCEN will not hesitate to take action against individuals when their conduct jeopardizes the integrity of our financial system.”

Asre admitted to willfully violating the BSA. Asre failed to register his money services business (MSB) with FinCEN and, in his capacity as the BSA Compliance Officer of a credit union, failed to maintain an effective AML program and failed to detect and report suspicious transactions.

Source

The above is probably a bit more serious and complex than most the small mom and pop operations that could potentially get fined for failure to report/file with FinCEN.

Any person who fails to comply with the registration requirements may be liable for a civil penalty of up to $5,000 for each violation.

Source