Did you know as an Endodontic Practice Owner of an LLC or corporation, you are required to report your Beneficial Ownership Information to FinCEN by the end of the year to avoid severe penalties. If you didn’t, it’s understandable because this is a brand new regulation taking many business owners by surprise especially due to the lack of circulating information. As your Endodontic Partner in success, we’re here to provide the insights and support needed to seamlessly manage these brand new obligations.
So let’s start with the basics
What is FinCEN?
The Financial Crimes Enforcement Network is a bureau of the United States Department of the Treasury tasked with safeguarding the financial system from illicit use, combating money laundering and its related crimes including terrorism, while promoting national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.1.
What does this mean for you?
As an Endodontic Practice Owner, you likely registered your business as an LLC, Corporation or similar entity. Endodontic practices, like other businesses, must report their Beneficial Ownership Information to FinCEN by the specified deadline to remain compliant. This entails identifying and disclosing key ownership details, including names, addresses, and ownership percentages of significant beneficial owners or active decision-makers.
What is Beneficial Ownership Information?
A domestic reporting company is a corporation, limited liability company (LLC), or any entity 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. A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests. The obligation to report Beneficial Ownership Information is a legal requirement under the Bank Secrecy Act (BSA) enforced by FinCEN.2.
When is the Deadline?
An LLC or Corporation, or similar entity that was established prior to Jan 1, 2024 will have until Jan 1, 2025 to report its BOI to FinCEN, while all newly registered business entities submitted in 2024 will have 90 days to file.
How to Comply with FinCEN Reporting
1. Understand the Requirements: Familiarize yourself with the FinCEN guidelines concerning Beneficial Ownership Information reporting for your Endodontic practice. Need help understanding your role, requirements and how to get started? FinCEN’s Small Entity Compliance Guide is a great place to start.
2. Identify Beneficial Owners: Determine the individuals who own or control your practice, including significant stakeholders and decision-makers.
3. Gather Required Information: Collect accurate and updated details of the identified beneficial owners, including their names, addresses, and ownership percentages.
4. Submit Information to FinCEN: Report the gathered Beneficial Ownership Information to FinCEN through the BSA e-filing system.
5. Seek Expert Assistance: Although this step isn’t required, it is recommended that you consider consulting legal or financial advisors specializing in compliance if you have any concerns about providing accurate reporting to FinCEN.
Importance of Compliance
Ensuring compliance with FinCEN regulations isn’t just about meeting legal requirements; it’s about fostering transparency, integrity, and trust within the financial ecosystem. Compliance with these regulations contributes to a more robust financial framework, reducing the risks associated with illicit financial activities and enhancing credibility for your Endodontic practice.
Don’t hesitate to seek guidance or leverage available resources to navigate this reporting requirement effectively. Your proactive approach to compliance will fortify your practice and contribute to a more transparent financial landscape.
- “FinCEN Mission.” Mission | FinCEN.Gov, www.fincen.gov/about/mission. Accessed 9 Jan. 2024.
- “Beneficial Ownership Information Reporting.” Beneficial Ownership Information Reporting | FinCEN.Gov, www.fincen.gov/boi-faqs#B_1. Accessed 9 Jan. 2024.
**Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as legal advice. It is recommended to consult either the linked FinCEN links in this article or legal professionals or financial advisors for specific guidance related to FinCEN reporting for your Endodontic practice.