Federal Beneficial Ownership Reporting & Pennsylvania’s Annual Business Filing Requirements

Business owners must navigate an evolving landscape of compliance requirements at both the federal and state levels. Two major updates are now in effect that demand attention: the Federal Beneficial Ownership reporting requirement under the Corporate Transparency Act (CTA) and Pennsylvania’s new annual business filing rule.

The Federal Beneficial Ownership rule mandates that certain businesses report key ownership details to the Financial Crimes Enforcement Network (FinCEN), aiming to combat money laundering and fraud. Meanwhile, Pennsylvania has introduced a new annual reporting requirement for businesses, replacing the previous decennial report system.

Failing to comply with these new regulations can result in fines, penalties, or even business dissolution. Understanding what’s required and meeting deadlines is crucial for staying in good standing. The support of experienced legal counsel can help you stay in compliance.

Federal Beneficial Ownership Reporting Requirements

The Federal Beneficial Ownership reporting requirement, established under the CTA, mandates that certain businesses disclose their beneficial owners to the FinCEN. This rule applies to most corporations, LLCs, and similar entities unless they qualify for specific exemptions. Businesses must report key information, including the names, addresses, and government-issued IDs of individuals with significant control or ownership interest.

Originally, existing businesses had until January 1, 2025, to file, while new entities had stricter deadlines. However, a recent court ruling has placed these requirements on hold indefinitely, creating uncertainty for business owners. While enforcement is paused, companies should stay informed, as future appeals or legislative action could reinstate the filing obligations.

Pennsylvania’s Annual Business Reporting Requirement

Pennsylvania has introduced a new annual business filing requirement, replacing the previous 10-year report system. This change applies to most registered entities, including corporations, LLCs, and nonprofits. Businesses must submit basic information each year to the Pennsylvania Department of State, including their legal name, business address, and names of key officers or members. Filing deadlines vary by business type, with corporations, LLCs, and nonprofits assigned different due dates.

Most entities must pay a small filing fee, though nonprofits are exempt. Failure to file could result in administrative dissolution or the loss of good standing, which could affect the company’s ability to conduct business. To avoid penalties, businesses should prepare early and ensure they meet their specific filing deadline.

Speak With a Harrisburg Business Attorney Today

Running a business is no small feat. Focusing on your business’s core competencies should be your top priority, but many business owners are forced to spend their time and effort complying with state and federal regulatory requirements.

That is where One Oak Legal can help. If you need guidance on compliance issues, we can assist you every step of the way. Contact us today to schedule your free consultation.