Donna Genie (YouTube video, Dec 28, 2023) explains a new federal beneficial-ownership reporting requirement effective January 1, 2024. Individuals must report ownership when they own more than 25% of an entity or have substantial control. Covered entities include corporations (C and S), limited liability companies, and other entities formed through a Secretary of State. The rule aims to prevent money laundering and terrorism by revealing hidden owners; exemptions include publicly held companies. The speaker also notes public confusion about which federal agency (FinCEN, SEC, IRS) is responsible.
Chapters
Have you heard rumblings about some new reporting about to go into effect for January 1, 2024? I'm hearing people say things happening with FinCEN, with the SEC or with the IRS. Nobody's really sure who's in charge of this, but we're going to clarify it and knock this out for you. The answer is yes. There is new reporting set to go in effect for January 1, 2024, where you have to report ownership of any entities where you own more than 25% of ownership interest, you have substantial control of that company. Now, where we report that it's going to be under the federal government, they're looking to stop opportunities for money laundering, terrorism, all these types of things where people form entities to hide activities and nobody really knows who the owners are. That's what they're trying to eliminate or stop here. There are some exemptions to this reporting. If you're a publicly held company owner, you don't have to report that. So that's an exemption. What has to be reported? Well, first, if you have an entity, a corporation, C Corp, or an S Corp, a limited liability company, or any entity formed through the Secretary of State, those are the entities we're talking about that are subject to this new reporting requirement.
