Mandatory FinCen Reporting for small businesses

Under the Corporate Transparency Act passed in 2021, the U.S. Department of Treasury, Financial Crimes Enforcement Network (“FinCen”) (https://www.fincen.gov/) has been authorized to require most small business entities to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company.  Entities set up prior to January 1, 2024 will have to report before the end of calendar year 2024.  Reporting for new entities must be done shortly after formation (currently 30 days, but a pending rule change may extend the deadline to 90 days).  Details on the reporting process will be available when the electronic platform comes on-line in January.  The new requirements will directly affect most small businesses in Virgina. We are monitoring the process in an effort to provide reporting services to our business clients. Feel free to contact us for more information.