Penalties for not complying could reach as much as $500 per day
DENVER — A new federal law, the Corporate Transparency Act, requires almost all corporations, partnerships, and LLCs in the United States, including small businesses, to report what is called “Beneficial Ownership Information” to the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”).
The Business Support Division of the Colorado Office of Economic Development and International Trade (OEDIT) is raising awareness about the new law, which went into effect on January 1, 2024, so that Colorado’s small businesses do not face unexpected penalties.
Reporting is free and takes only a few minutes. However, according to FinCEN, federal penalties for failing to report complete or updated information or providing false or fraudulent information may result in civil penalties of up to $500 per day, among other civil and criminal penalties.
Affected businesses that formed in 2024 have 90 days to file while existing businesses must report their information by the end of 2024.
Upcoming Trainings and Additional Resources:
- July 24, 2024 U.S. Small Business Administration online event: Understanding Beneficial Ownership Information (BOI) and How to Report
- Beneficial Ownership Information (Financial Crimes Enforcement Network website)
- Overview of Beneficial Ownership Information Reporting with Under Secretary Brian Nelson (Video)
About Colorado Office of Economic Development and International Trade
The Colorado Office of Economic Development and International Trade (OEDIT) works to empower all to thrive in Colorado’s economy. Under the leadership of the Governor and in collaboration with economic development partners across the state, we foster a thriving business environment through funding and financial programs, training, consulting and informational resources across industries and regions. We promote economic growth and long-term job creation by recruiting, retaining, and expanding Colorado businesses and providing programs that support entrepreneurs and businesses of all sizes at every stage of growth. Our goal is to protect what makes our state a great place to live, work, start a business, raise a family, visit and retire—and make it accessible to everyone. Learn more about OEDIT.