What do I need to know about “Beneficial Ownership Interest” Reporting?
The Corporate Transparency Act, signed into law on January 1, 2021, brings changes to anti-money laundering laws and reporting requirements for certain businesses in the US. For small winery owners, this means understanding new obligations and how they apply to your operation.
Who's Affected?
Both domestic and foreign reporting companies fall under the Act's requirements. If your winery filed documents with the secretary of state to establish itself, such as corporations, LLCs, and similar entities, you're likely affected. However, if you operate as a sole proprietorship or a trust, you're generally exempt.
What Info is Needed?
To comply, you'll need to provide information about your beneficial owners – those individuals who have a significant stake or control in your winery. This includes their full names, birthdates, addresses, and a unique ID number, which can be from various government-issued documents.
Defining Beneficial Owners
Beneficial owners can be individuals who own or control at least 25% of your winery, or those who exert substantial control over its operations. This might include key decision-makers like top executives or individuals with authority over appointments.
Understanding Company Applicants
If someone helped set up your winery after 2023, they're considered a company applicant. They'll need to provide the same information as beneficial owners.
Important Deadlines
Existing wineries formed before 2024 have until January 1, 2025, to file their initial report. For those established in 2024, the deadline is 90 days after formation, while wineries established after 2024 will have 30 days.
Keeping Information Updated
If there are any changes to previously reported information, such as ownership or key personnel, you must file an updated report within 30 days. Failure to do so can result in significant penalties.
Filing Procedures
Reports must be filed electronically through FinCEN's e-filing portal. You can choose to fill out a web-based form or upload a completed PDF. There's no fee for filing.
Seeking Guidance
If you're unsure about compliance or need assistance, FinCEN provides resources like a Small Entity Compliance Guide and FAQs to help navigate the reporting requirements. These are available at https://www.fincen.gov/boi/small-business-resources.
