New federal reporting requirements under the Corporate Transparency Act (CTA) are reshaping compliance obligations for small businesses, requiring many companies to disclose detailed information about their “beneficial owners”—the individuals who ultimately own or control the business. In the Arlington Economic Development blog, Bean, Kinney & Korman attorney Meghan H. Freed outlines how businesses with fewer than 20 employees and under $5 million in revenue are most likely to be affected and must file a Beneficial Ownership Information Report (BOIR) with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). The report requires sensitive personal data, including names, addresses, and identification numbers, making accuracy and timely filing critical. Freed emphasizes that determining who qualifies as a beneficial owner and maintaining up-to-date filings can be complex, particularly as ownership structures evolve. With significant penalties for noncompliance, the CTA marks a major shift toward transparency, requiring businesses to take a more proactive approach to corporate governance and regulatory risk.

BOI reporting introduces new compliance burdens with real legal consequences for businesses that get it wrong. Bean, Kinney & Korman attorneys provide practical guidance to help companies meet these requirements and avoid costly penalties.