08/13/2024
From Adrian Scurtu, my preferred accountant sent this out:
Every LLC, S-Corporation, or C-Corporation needs to file this report.
Tax and legal requirements are always changing, especially for businesses. One of the largest legal changes is the implementation of the Corporate Transparency Act. Due to this, businesses have a significant new filing requirement due at the end of 2024, which could incur major penalties if missed.
In an effort to fight financial crimes and fraud such as corruption, money laundering, tax fraud, and more, Congress passed the Corporate Transparency Act in 2021. Under this Act, reporting companies are required to file information on each beneficial owner with the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) in 2024. This means reporting companies must identify and disclose any person who holds a 25% or greater ownership interest or exercises substantial control over the company and report this on a Beneficial Ownership Information (BOI) report.
The BOI filing is due by December 31, 2024 and it is important to understand this new rule due to the severity of criminal and civil penalties for failure to file, which can include imprisonment and fines. Newly created businesses in 2024 have 90 days to file from the date of creation.
The fees for failing to file are up to $500 per day, up to $10,000. Failing to file purposely to hide information can lead to criminal penalties and imprisonment up to 2 years.
As we can see, the BOI reporting is something that the government is placing a high level of importance on, and something that business owners need to also take seriously.
Every LLC, S-Corporation, or C-Corporation needs to file this report. Even if you are a single member LLC or own rental properties in an LLC, this requirement applies to you.
The report includes several pieces of information about an entity, such as its full legal name, any trade or DBA names, its address, federal tax ID number (or EIN), and the jurisdiction where it was either created or registered. The report also includes the owners’ full legal names, birth dates, current addresses, images of acceptable identification documents (such as a passport or driver's licenses), along with the issuing jurisdiction and the document's ID number.
Our BOI team is ready to assist you with your BOI filing needs. Because the BOI report is due by December 31, 2024, please contact us as soon as possible to start your application, and no later than December 1st to ensure we have time to file timely.
Our fee for BOI filing is $495 per BOI report (which includes the business information reporting and 1 owner's information) and an additional $100 for every additional owner required to file.
Please email Ginny at [email protected] to get started on your BOI reporting requirements or you can complete the documentation yourself online.
Many companies are required to report information to FinCEN about the individuals who ultimately own or control them. FinCEN began accepting reports on January 1, 2024. Learn more about reporting deadlines.
