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  • Writer's pictureJacqueline C. Hawkins, esq,

Corporate Transparency Act- Reporting Company

Updated: Mar 7

In our previous blog post, we discussed the Corporate Transparency Act. We will later delve into who a beneficial owner is, but before doing so it is important to determine what a reporting company is.


Under FinCEN’s Reporting Rule, any company meeting the definition of a “reporting company", and not meeting one of the limited 23 exemptions is subject to the reporting requirements and must file a Beneficial Ownership Information (“BOI”) report within the specified time frame.


Although there are two categories of reporting companies, foreign and domestic, it all boils down to this question: was the company created by the filing of a document with a secretary of state or any similar office under the law of a State or Indian tribe, or, in the case of a foreign entity, has the company registered to do business in any US State or Tribal jurisdiction by filing a document with a secretary of state or similar office of the State or Tribe. If the answer to either of the above is yes, then your organization may be considered a reporting company.


Luckily for some, the Reporting Rule exempts twenty-three (23) specific types of entities from the reporting requirements.  Many of the exceptions are for organizations within highly regulated industries such as banks, investment companies and accounting firms. The analysis as to whether your organization would fit one of these exemptions is highly factual and based on specific criterion.  Before making any determination as to whether your organization fits into one of the aforementioned exemptions, do a thorough review of the FinCEN Beneficial ownership information guidance, or seek legal counsel.


For timeline to file and other general information, see our previous blog post on the Corporate Transparency Act. Follow Executive Legal Services to see continued updates and break downs of the various pieces of the Corporate Transparency Act.


If you have questions about the reporting requirements of your organization, or who within your organization may be considered a beneficial owner, book a consultation with Executive Legal Services- a member of our team would be happy to walk through your specific circumstance with you.


Executive Legal Services is a North Carolina law firm focusing in the areas of Employment, Business, Contracts and outside general counsel services.

 

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