By: Elizabeth Jane Brooks, LMT, BCTMB

What is FinCEN?

Originally established in 1990, the Financial Crimes Enforcement Network is a bureau of the United States Department of the Treasury. Fundamentally, FinCEN is a network connecting law enforcement, financial, and regulatory agencies. Its purpose is to both gather and analyze financial information to fight against financial crimes (such as domestic and international money laundering, and the financing of terrorists).

FinCEN reporting went into effect on January 1, 2024 pursuant to the Corporate Transparency Act. It is important to consider whether your business must file this report regarding Beneficial Ownership Information (BOI).

What types of entities must file the FinCEN BOI report?

There are two steps in deciding whether or not a BOI report needs to be filed.

First, determine the type of entity of your business. Domestic companies that are required to report include corporations, limited liability companies (LLCs), professional limited liability companies (PLLCs), limited partnerships, or any other entity created which was filed with the secretary of state or a similar office. In addition, similar entities formed under the law of a foreign country and registered to do business within the United States are also required to file this report. Moreover, under some circumstances limited liability partnerships and business trusts need to file as well—for this, checking with your accountant is advised.

The second step is checking if your entity is one of the 23 types that are exempt from having to file, although the vast majority of massage practices will not qualify for these exemptions. (www.fincen.gov/boi-faqs). FinCEN provides a useful Exemptions Checker Tool to assess your qualification (www.fincenfetch.com/boi-report-exemptions/).

Important dates to c  onsider

If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to file your initial BOI report. However, if your company was created or registered anytime in 2024, you will have just 90 days to file your initial report after receiving notice that your business entity is legally recognized. This is important as you may be liable for significant penalties (and possibly even jail time) when failing to comply with the registration requirements. This can include filing false information or filing incomplete information. If you have missed a deadline for filing you may be able to explain your reasons and get a reduced penalty.

Additional links:

For more information: https://www.fincen.gov/

To file your report online: https://boiefiling.fincen.gov/

Filing dates graphic: https://www.fincen.gov/sites/default/files/shared/BOI_Reporting_Filing_Dates-Published03.24.23_508C.pdf

A YouTube walkthrough for online reporting: https://www.youtube.com/watch?v=5xOsSiQI-C8

Elizabeth Jane Brooks, LMT, BCTMB

WSMTA Board Director

Clinical Practices Committee

Washington State Massage Therapy Association

Visit us at: mywsmta.org