Today, for all domestic entities and any foreign company, registered to run their business in the United States, to avoid daily penalties, they need a reliable CTA compliance solution. According to the Corporate Transparency Act (CTA), qualifying companies need to make their beneficial ownership information (BOI) available to the Financial Crimes Enforcement Network (FinCEN).
In case you don’t know, reporting BOI to FinCEN is a very serious legal matter that you need to take seriously. This CTA compliance involves complex regulations, which explains why it’s crucial to outsource your reporting to a professional company, such as FinCEN Reporting. As you read on, you’ll discover why it makes sense to outsource your BOI reporting to a professional compliance services provider.
Who needs to submit beneficial ownership information to FinCEN?
As of January 1, 2024, the Corporate Transparency Act was in effect. This act makes it mandatory for companies to make plans for their CTA compliance. It says companies running their businesses in the US must fill out their beneficial ownership information and have it reported to FinCEN.
Speaking of eligibility, you must take this FinCEN reporting seriously if you own a domestic or foreign company that is registered to run its business in the United States. Of course, there’s a daily penalty in place for companies that fail to adhere to this compliance.
Why outsource your BOI reporting to a professional company?
Below are a few reasons why it makes sense to outsource your company’s BOI filling to a CTA compliance services provider:
1. Complex regulations
As earlier mentioned, BOI fillings come with complex regulations. This complexity arises from the need for companies to have a balance between:
- Fight against financial crimes
- Transparency
- Privacy
Filling and reporting your company’s beneficial ownership information to FinCEN is complex because of the regional variations in the regulations. Sadly, navigating these variations can be pretty challenging if you’re new to FinCEN BOI reporting.
Other factors that cause these regulation complexity are:
- Ability to identify whether or not you qualify for beneficial ownership information reporting.
- It can be time consuming to verify and confirm the accuracy of your BOI filing.
- Ability to balance transparency with various privacy issues associated with BOI.
2. Centralization
For you to get the most out of your BOI reporting, it’s crucial to centralize all your beneficial ownership information in a simple location. Having a single source of truth for BOI reporting won’t only ensure consistency. In addition, it also encourages accurate and efficient BOI fillings. Taking this centralized approach will prevent costly errors associated with having multiple data sources.
3. Lower risk
With a reliable service provider, such as FinCEN Reporting, you’ll have enhanced ability to fill, submit, and keep track of your beneficial ownership information. All of these things will ensure you remain CTA compliant.
That’s not all; a company like FinCEN Reporting will also assist you in safeguarding your key personal identifiable information (PII). Since PII is a requirement from the Corporate Transparency Act, outsourcing your BOI filling is crucial to get enhanced protection to sensitive data associated with PII, including:
- Name
- Date of birth
- Residential address
- Photocopy of passport or any other approved means of ID.
That said, the best professional compliance services provider should allow you to confidentially submit your PII & BOI data. A good firm worth trying today is FinCEN Reporting.
4. Time effective handling of multiple entities
Depending on your jurisdiction, your company may be required to do beneficial ownership information for each entity it controls, including subsidiaries and affiliates. If this is your company’s current situation, then you will be handling a large volume of BOI reporting. In this case, it can be challenging to maintain accuracy when submitting these reports to FinCEN. Here’s where the need to outsource your BOI reporting comes into play.
A reliable professional compliance services provider, such as FinCEN Reporting, have secure and automated multi-report workflows. This allows them to maintain accuracy regardless of the number of BOI reports for FinCEN you’re looking to handle.