Business
LegalZoom Launches Beneficial Ownership Information Report to Help Businesses Satisfy New Federal Mandate under the Corporate Transparency Act
The Beneficial Ownership Information Report simplifies the new legal requirement, delivering an accurate filing to help businesses save time, avoid serious
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"The Beneficial Ownership Information Report simplifies the new legal requirement, delivering an accurate filing to help businesses save time, avoid serious criminal and civil penalties, and remain compliant\nMOUNTAIN VIEW, Calif., Jan. 04, 2024 (GLOBE NEWSWIRE) -- LegalZoom, the No. 1 choice in online small business formations, announced the release of its Beneficial Ownership Information Report, a new addition to LegalZoom's ecosystem of compliance services. The new service helps customers satisfy the federally mandated beneficial ownership information reporting rule under the Corporate Transparency Act, which went into effect on January 1, 2024. According to the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the United States Department of Treasury, 89% of all business entities must file identifying information with FinCEN about the individuals who own or control a business. The Corporate Transparency Act is one of the most important legislations to impact small business owners. This new rule supports the ongoing focus and efforts of the U.S. Government to deter those who would hide or benefit from actions that would harm others, aiming to prevent financial crimes and fraud, such as money laundering, human trafficking, drug trafficking, tax fraud, and fraud against employees, customers, and other businesses. Business owners who fail to comply with this law, such as failure to file timely or correctly, can face severe criminal and civil penalties, which can include imprisonment for up to two years and/or fines up to $10,000, and civil fines of up to $500 per day. Business entities formed before January 1, 2024 will have until December 31, 2024 to file, those formed on or after January 1, 2024 will have 90 days after formation to file, and those formed on or after January 1, 2025 will have 30 days to file. Business entities that amend their formation documents or change their residential address or ID on or after January 1, 2024 will have 30 days to submit an updated report. LegalZoom’s Beneficial Ownership Information Report service, which is available now, aims to bring small business owners confidence in their compliance with this new law, helping businesses stay on top of the requirement with notifications leading up to their filing deadline. Once it’s time to file, LegalZoom’s simplified questionnaire and guid...