As of January 1, 2024, certain types of corporations, limited liability companies, and other similar entities doing business in the United States must report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). These new reporting requirements were created under the Federal Corporate Transparency Act to strengthen the integrity of the U.S. financial system by making it harder for illicit actors to use shell companies to launder their money or hide assets. Additional information about the reporting requirements is available at FinCEN.gov/BOI. Subscribe to FinCEN Updates for future guidance documents.
Most businesses in Minnesota are small businesses that may need to file. So will many foreign businesses registered to do business in the U.S. However, there are some exceptions.
The following 23 types of entities are exempt from the new reporting requirement:
FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether a company meets an exemption (see Chapter 1.2, “Is my company exempt from the reporting requirements?”). Companies should carefully review the qualifying criteria before concluding that they are exempt.
Reporting companies can report beneficial ownership information electronically through FinCEN's BOI E-Filing System.