Dear [Beneficial Owner Name]:
Starting January 1, 2024, the 2021 Corporate Transparency Act (CTA) introduces mandatory reporting of Beneficial Ownership Information (BOI). This requires ‘Reporting Companies’ who do not meet one of the 23 exemptions, to report details of their ‘beneficial owners’ to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
It has been determined that [Company Name] is subject to these reporting requirements and must submit an initial BOI report by January 1, 2025. As part of this filing, we are required to list all beneficial owners of the entity.
A beneficial owner is defined as an individual who directly or indirectly:
- Owns directly or indirectly 25% or more of the company’s ownership interest. OR
- Someone who can exercises substantial control over the entity (e.g., as a senior officer).
We have identified you to be a beneficial owner of [Company Name], therefore we are required to include you in the list of beneficial owners on the company’s FinCEN BOI report. The information we are required to include is as follows:
- Full legal name
- Residential address
- Date of birth
- A unique identifier from a valid passport, driver’s license, or state ID (along with a photo of the Government ID)
To streamline the process, beneficial owners have the option to apply for a FinCEN ID number. Providing us with your FinCEN ID number will allow us to list you in the report without the need to submit your personal information (such as date of birth, address, and a copy of your government-issued ID). The process for obtaining a FinCEN ID is straightforward and can be completed using the step-by-step guide under the subheading ‘Obtaining a FinCEN Identifying Number’ in the article ‘Benefits of a FinCEN Identifying Number and a Guide for How to Apply‘.
Please complete your FinCEN ID application as soon as possible and provide us with your FinCEN ID number. Failure to comply with these new reporting requirements can result in significant civil and criminal penalties for the entity or any individual responsible for causing non-compliance.
If you have any questions or need assistance, please don’t hesitate to reach out to us.
Thank you for your prompt attention to this important matter.
Sincerely,
Thank you for your attention to this important matter.
Sincerely,
[Name of Reporting Company]