What is FinCen?
FinCen is the United State’s Financial Crimes Enforcement Network, a bureau of the US Treasury Department formed in 1990 to investigate financial crimes and prevent money laundering.
What is the registration I must complete for business ownership?
Individuals with 25% or greater ownership in a business must register. From fincen.gov/boi-faqs, the reason businesses must register Beneficial Ownership Information Report (BOIR) is “In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.”
While lawsuits challenging this requirement are underway, notably National Small Business United v Yellen, this does NOT mean you no longer have to file. You still must file, as shown below in the middle paragraph unless you are already a member of the National Small Business Association.
Where can I learn more about this?
The most helpful and concise form is this 1.5 page PDF flyer from the Small Business Administration. Download a copy of the PDF.
Additionally, FinCen’s website, the Small Business Administration’s website, and SCORE’s websites have information on FinCen registration. Always seek legal counsel as the information on this page may not be accurate in the future as things change. It is always up to you – the entrepreneur – to ultimately verify information. ZSL is providing this information for educational purposes only and is not legal advice.
When do I need to file?
Businesses created before 2024 must file by January 1, 2025. New businesses registered in 2024 have 90 days to file. Businesses forming in 2025 and later have 30 days to file. If information about your business changes at any time, you have 30 days to update your FinCen record through their portal.
How to file
Please go to https://boiefiling.fincen.gov/ to file. It only takes a few minutes. Please have your business’s EIN or TIN number and a photo of your driver’s license which needs to be uploaded. Please be aware information must be submitted on time and must be accurate, per below image reminding you just before submission this can be a civil or criminal matter.
