Small businesses may need to add info to ownership registry

TOLEDO, Ohio (WTVG) – Small business and companies that are LLCs might soon need to register for a new program with the Department of Treasury.

It’s a program they may not have ever heard of, but is a legit one.

The idea is pretty basic: find out exactly who’s running a company so that people aren’t hiding behind shell companies, but it has some people worried about giving out personal information.

Anderson Towing in Sylvania Township is the epitome of a small business. When Chuck Anderson heard he may need to give contact information for his business to the US Treasury Department, it didn’t sound right.

“I was kinda worried about giving that out. I didn’t know if it was a scam or something,” said Anderson.

He’s referring to the beneficial ownership information report. It’s coming from the Department of Treasury, from a federal law for companies to provide their ownership information.

Which companies need to do it? According to the Treasury Department: domestic companies that need to do it are corporations, limited liability companies, and any other entities created by the filing of a document with a Secretary of State or any similar office in the United States.

“It’s a small business. I was just kinda surprised when I saw it, and kinda worried about not getting signed up by January 1st. If I do have to sign up,” said Anderson.

This program has given people a year to sign up and that ends on January 1st. Companies could face fines if they don’t.

Who gets the information? According to the Treasury Department, it’s federal agencies engaged in national security, intelligence, or law enforcement activity; state, local, and tribal law enforcement agencies with court authorization; officials at the department of the treasury are some of the entities.

Filing is free and it’s something companies like Anderson towing will be reviewing.

“I think there’s a good chance people will be upset about it, companies getting fines. Small companies can’t really afford that $500 a day,” said Anderson.

The I-TEAM has spoken with the Better Business Bureau and yes, this is legit.

This ownership information is not posted in a public database so it is exempt from someone getting it through public records.

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