Business Ownership Information is Not Dead for Foreign-Reporting Companies

Over the past couple of years, businesses have been in limbo when it comes to filing their business ownership information with the federal government. Their owners have watched as courts flip-flopped over the constitutionality of requiring businesses to share their ownership information with the government.

This weekend, the U.S. Treasury Department announced a final verdict for businesses that should give some relief for those who were waiting to file.

In its announcement, the Treasury Department declared that it would not enforce any fines or punishments listed in the law for any U.S. citizen or domestic-based companies. Instead, the agency will be engaging in a rulemaking initiative to narrow the scope to foreign-reporting companies.

That means the vast majority of small businesses do not have to file their BOI paperwork, but for the 25,000 or so foreign-reporting companies registered in Florida, you still are on the hook.

The attorneys at The Orlando Law Group can help businesses determine if they are required to file their Beneficial Ownership Information and file all the required documents for you.

What is the Beneficial Ownership Information?

As a recap of the issue, privately owned small businesses, for the most part, do not have to file any sort of public disclosures in the way that companies listed on a stock exchange must do every quarter.

Unfortunately, too many criminals are using fake companies for money laundering and other crimes. It is very difficult to track criminal activity without a subpoena.

That is why, in 2021, the federal government passed the Corporate Transparency Act, hoping to provide more tools for law enforcement to find terrorists, money laundering, counterfeiting and more.

Yes, just like how we take off our shoes at the airport because of an act of terrorism, law-abiding small businesses were going to be required to file additional information with the government because of criminals.

Who was required to file Beneficial Ownership Information?

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