NAHB Free Webinar: New Beneficial Ownership Reporting Requirements: What Small Business Owners Need to Know

Beginning on January 1, 2024, many small businesses will be required to report their beneficial ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), identifying those who directly or indirectly own or control the company.

This reporting helps the U.S. government identify and limit money laundering, corruption, tax evasion, drug trafficking, fraud and other illegal activities.

The reporting requirements generally are applicable to small corporations, limited liability companies (LLCs) and other similar entities that:

• have 20 or fewer full-time employees; and
• filed federal income taxes in the previous year demonstrating $5 million or less in gross receipts or sales.

There are 23 types of entities that are exempt from reporting beneficial ownership. Those entities include:

• publicly traded companies meeting specified requirements
• many nonprofits
• certain large operating companies