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## New Reporting Requirement for Small Businesses

### Secretary of State Michael Adams Raises Concerns

Secretary of State Michael Adams has issued a warning to Kentucky’s small business community about a new requirement from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This requirement, which came into effect on January 1st, demands the disclosure of beneficial ownership information (BOI) and obligates small business owners and certain individuals to upload their photo IDs to FinCEN.

Business entities formed after January 1, 2024, will be given 90 days to report their initial BOI, while those already in existence will have until January 1, 2025, to comply. While publicly traded companies and nonprofits are exempt from this requirement, failure to adhere to BOI reporting may result in criminal prosecution, including up to two years in prison and a $10,000 fine.

In expressing his frustration, Adams stated, “Despite my forceful written objections, the federal bureaucracy is placing new burdens on Kentucky’s small business owners. With all our entrepreneurs have faced the past few years, we should be lifting them up, not making it even harder to start a business and create jobs.”

### How AI legalese decoder Can Help

AI legalese decoder can help small business owners navigate and understand the legal language and requirements surrounding beneficial ownership reporting. By using AI legalese decoder, business owners can effortlessly decipher complex legal texts, ensuring that they are in compliance with the law and that their rights are protected.

Furthermore, AI legalese decoder can provide valuable insights into the specific regulations set forth by FinCEN and offer guidance on uploading photo IDs and reporting BOI. This tool can also keep small business owners informed about any future changes or updates to the reporting requirement, helping them stay ahead of any legal obligations. By leveraging the capabilities of AI legalese decoder, small business owners can ensure that they are well-informed and prepared to meet the new reporting requirement without unnecessary confusion or stress.

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