Businesses must now disclose who owns them to federal government beginning January 1st

04 December 2023- Beginning Jan. 1, 2024, many companies in the United States will have to report information about their beneficial owners – the individuals who ultimately own or control the company – to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

“While this is a federal requirement and not a Pennsylvania requirement, we are informing our business customers so that they can be prepared to comply,” Secretary of the Commonwealth Al Schmidt said. “The Department’s Bureau of Corporations and Charitable Organizations maintains records of more than 3 million companies that do business in the Commonwealth and serves as the centralized filing office for Uniform Commercial Code financing statements.”

According to FinCEN, existing companies created or registered to do business in the United States before Jan. 1, 2024, will have an entire year – until Jan. 1, 2025 – to submit their beneficial ownership reports. New companies created or registered to do business on or after Jan. 1, 2024, will have 90 calendar days after receiving notice that their creation or registration is effective to submit their reports.

There are 23 categories of business entities that are exempt from this new federal reporting requirement. Pennsylvania business owners can find more information on the reporting requirements and exemptions at www.fincen.gov/boi.