Back in February we informed you of a new filing requirement called the Beneficial Ownership Information (BOI). At that time, we advised you to hold off on that filing because there was talk that it would be repealed. There have been no changes, so it is time that you file. If your business was in existence prior to 1/1/24 then your filing due date is 12/31/24. If you choose to file yourself, you can do so at www.fincen.gov/boi or you can contact one of the two following companies that we recommend. CTA Integrity https://ctaintegrity.co/ancient you can use the coupon code ANCIENT50 for 50% off through 9/30/24 or another company is Accumera www.accumera.com. Please see below for the full detailed original information that we had sent out that goes over who must file and when. If you have any questions, please contact the office.
In 2021, Congress enacted the Corporate Transparency Act. This law creates beneficial ownership information (BOI) reporting requirement as part of the government of the United States 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.
Beginning on January 1, 2024, many companies and trusts in the United States will have to report information about their beneficial owners. the individuals who ultimately own or control the company. They will have to report the information to the Financial Crimes Enforcement Network, FinCEN. FinCEN is a bureau of the U. S. Department of the Treasury.
Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN.
Your company may be a reporting company and need to report information about its beneficial owners if your company is:
- A corporation, a partnership, 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 with an Indian tribe by such a filing.
Twenty-three types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies, nonprofits, and certain large operating companies.
Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi. Once filed, the system will provide the filer with confirmation of receipt. It is advised you make and keep a copy for your permanent records.
Reports will be accepted starting on January 1, 2024.
- If your company was created or registered prior to 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. January 1, 2025 this is to be 30 days.
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
Reporting companies who do not comply with the Corporate Transparency Act may face penalties up to $500 per day that a violation continues. Criminal penalties include a $10,000 fine and/or up to two years of imprisonment. If a report is filed that contains mistakes or an omission of information, you can correct the report within 90 days to avoid penalties.
The BOI reporting to FinCEN is neither a part of the tax filing of your business tax return nor that of your personal tax filing. A few suggestions, consult with your legal representative regarding any required filing or contact one of the companies mentioned above. Or lastly, you can go to the website and file yourself, www.fincen.gov/boi.
Here is the link for the Small Entity Compliance Guide; https://fincen.gov/boi/small-entity-compliance-guide://fincen.gov/boi/small-entity-compliance-guide.