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A: FinCEN is the Financial Crimes Enforcement Network within the US Department of Treasury.  The new Beneficial Ownership Reporting Rule requires certain business owners to provide personal identifiable information to FinCEN. A beneficial owner is any individual who exercises substantial control over the company OR who owns or controls at least 25% of the company. So only these types of owners would need to report. Someone with a small passive stake in a company would not need to report. While some business entities are exempt from this reporting requirement, a real estate firm that is a corporation or LLC would be required to report. 

If you are required to report, you will need to provide the following information about the company: the company name and any trade names or DBA, the company address, the jurisdiction where the company was first formed or registered, and the company taxpayer identification number. Additionally, the beneficial owners will need to provide the following information: legal names, birthdates, home addresses, and identifying number such as a driver’s license number or passport number.   

If your company existed prior to January 1, 2024, you must submit your information to FinCEN by January 1, 2025. If your company was created after January 1, 2024 but before January 1, 2025, then the company will have 90 calendar days to report. If your company is created after January 1, 2025, then you will have 30 calendar days to report. Reporting is done through FinCEN’s website. The URL is www.fincen.gov/boi. FinCEN says there is no fee to report. 

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