New Reporting Law
What Happened?
Existing LLCs, Corporations, and business entities with an effective filing date established BEFORE January 1, 2024, are required to file a Beneficial Ownership Information (BOI) report by January 1, 2025.
Business entities created ON OR AFTER January 1, 2024, and before January 1, 2025, must file a Beneficial Ownership Information (BOI) report within 90 calendar days of their registration or formation with the Secretary of State's office.
Where do I file?
You can file online at their official government website here: https://www.fincen.gov/boi
It's scary and already confusing me. Can you help me file it?
Yes, of course! If you're already our tax client, it will be free of charge. Just simply reply to this email. Our company will expertly file your BOI report, obtain a FinCEN, and manage your compliance needs - ensuring peace of mind and seamless adherence to regulations. Confirmation will be emailed to you as well. Reporting companies may use third-party service providers (such as us, EA Tax Pros LLC, to help submit beneficial ownership information reports. Third-party service providers will have the ability to submit the reports via FinCEN’s E-Filing system and/or an Application Programming Interface (API).
What happens if I don't file?
As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?
In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. "This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures."
If you have any further questions, feel free to reach out to me. Thank you.
