Federal Beneficial Ownership Reporting

 

FinCEN is now Requiring Beneficial Ownership Information (BOI) to be reported through their BOI E-Filing System.

Do I Need to Report?

Most businesses are small businesses that may need to file. Your company may need to report information about its beneficial owners if it is:

• A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
• A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing with a secretary of state.

There are 23 types of entities that are exempt from the beneficial ownership information reporting requirements. FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether your company qualifies for an exemption. 

When Do I Report?

Reports began being accepted on January 1, 2024.

• If your company was created or registered before January 1, 2024, you will have until January 1, 2025, to report BOI.
• If your company is created or registered on or after January 1, 2024, you must report BOI within 90 days of notice of creation or registration. Beginning in 2025, that reporting window is 30 days.
• Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

What information do I need to report?

 

All Companies who are subject to BOI filing, must report the name, address ID number, phone number, business ownership, and more…..for each of the following persons.

 

·         Any individual who either directly or indirectly exercises substantial control over the reporting company

·         Any individual who owns or controls at least 25% of the reporting company’s ownership and/or management interests

·         The individual who registered the reporting company with their Secretary of State

 

What Penalties could my business face?

 

·         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.

 

How can Deanna Ramsey CPA LLC help?

 

·         This is a new requirement that will affect most businesses operating in the United States.  The process is detailed and must be completed accurately!

·         We already know how to file this report online and are happy to assist with the process.

 

For more information, visit FinCEN’s website, view FinCEN’s Frequently Asked Questions (FAQs), or contact FinCEN.