Beneficial Ownership Reporting: Where Small Business Filings Stand
Reporting requirements for LLCs and corporations have changed several times. Here is a plain-English summary of who files, what is reported and what the penalties look like.
Beneficial ownership reporting has been one of the most confusing compliance topics for small business owners, largely because the rules and deadlines have shifted more than once since they were introduced.
Who is affected
Most small corporations and LLCs formed in the United States, along with foreign entities registered to do business here. Larger operating companies and several regulated entity types are exempt.
What gets reported
- Legal name, trade names, principal address and taxpayer identification number of the entity.
- Name, date of birth, address and an identifying document for each beneficial owner.
Practical advice
Keep an internal record of who your beneficial owners are and update it whenever ownership changes. Filing is not difficult; failing to notice that a filing was required is the expensive part.
Questions about your own situation?
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