Penalties for not complying could reach as much as $500 per day
A new federal law, the Corporate Transparency Act, requires almost all corporations, partnerships and LLCs in the United States, including small businesses, to report what is called “Beneficial Ownership Information” to the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”). The Business Support Division of the Colorado Office of Economic Development and International Trade (OEDIT) is raising awareness about the new law, which went into effect January 1, 2024, so that Colorado’s small businesses do not face unexpected penalties. Reporting is free and takes only a few minutes. However, according to FinCEN, federal penalties for failing to report complete or updated information, or providing false or fraudulent information, may result in civil penalties of up to $500 per day among other civil and criminal penalties. Affected businesses that formed in 2024 have 90 days to file, while existing businesses must report their information by the end of 2024.
Upcoming Trainings and Additional Resources:
- July 24, 2024 U.S. Small Business Administration online event: Understanding Beneficial Ownership Information (BOI) and How to Report (https://www.sba.gov/event/50744)
- Beneficial Ownership Information (Financial Crimes Enforcement Network website, https://www.fincen.gov/boi)
- Overview of Beneficial Ownership Information Reporting with Under Secretary Brian Nelson (Video, bit.ly/464HRaR)
