BOI Reporting for Business Owners Guide
This post is to alert our clients who own or control a company of a new reporting requirement. If you do not own or control a company, you can disregard this message.
In 2021, Congress passed the Corporate Transparency Act. This law created a new beneficial ownership information (BOI) reporting requirement as part of the US govt efforts to make it harder for ‘bad actors’ to hide or benefit from shell companies or other opaque ownership structures.
Please take a moment to review the new requirements.
What does this mean for you?
Effective January 1, 2024, all business owners/companies (with few exceptions) are required to report the company’s beneficial ownership information to FinCEN (Financial Crimes Enforcement Network).
Filing is simple, secure, and free of charge. It takes about five minutes to complete the BOI form. Fincen has a friendly-website with an explainer video. Go to https://www.fincen.gov/boi to submit yourself.
Beneficial ownership information reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once.
When to Report (initial filing):
For companies created or registered before 01/01/2024, you have until 01/01/2025 to report.
If your company was created or registered in 2024, you must report BOI within 90 calendar days after receiving the actual notice of your company’s creation or registration effective, whichever is earlier.
If your company is created or registered on or after 01/01/2025, you must file the BOI report within 30 calendar days.
Resources:
BOI – Beneficial Ownership Information: FinCEN BOI
BOI Frequently Asked Questions: Beneficial Ownership Information FAQ
We do not currently offer a service to complete the BOI reporting for our clients, you will need to go online to the website to complete the filing. As mentioned, this reporting should be simple and straightforward.
In summary, if you own or control a company, you must know the new beneficial ownership information reporting requirement under the Corporate Transparency Act.
Starting January 1, 2024, qualifying business owners must report their beneficial ownership information to FinCEN electronically.
This reporting is mandatory unless your company falls under one of the specific exceptions and is generally a one-time requirement unless updates or corrections are needed.
Understanding and complying with these new regulations is crucial to ensuring your business operates transparently and remains in good legal standing.
If you have questions or need further clarification on navigating these requirements, don't hesitate to schedule a consultation with us.
We're here to help you understand these new regulations and ensure your business complies smoothly. To book a consultation, please visit Crypto Tax Consultation.
