There are only a few weeks file for you to file your beneficial ownership information report (BOI). Not complying with this new legal requirement could put you and your business at risk for penalties, and even prison.
Under the Corporate Transparency Act (CTA) passed in 2021, corporations, limited liability companies (LLCs), and other similar entities must report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury.
Who exactly needs to file these reports?
The CTA applies to businesses that are formed or registered to do business in the United States, including corporations, LLCs, and other similar entities. Businesses formed or registered before January 1, 2024, have until December 31, 2024, to submit their initial BOI report. If your business is formed on or after January 1, 2024, you have 90 days from formation to file the BOI report.
Are small businesses exempt from filing?
Unlike most federal laws, most exemptions under the CTA apply to large companies, so if you’re a small business owner, it’s likely that you must file.
Why is it important to comply with the CTA’s BOI reporting requirements?
Compliance with the CTA is a legal obligation that businesses must fulfill. Failure to comply with the reporting requirements can result in significant penalties and fines, and even the possibility of prison.
What steps should businesses take to ensure compliance with the CTA?
1. Know Requirements: Confirm whether your business is subject to filing.
2. Identify Beneficial Owners: Identify and gather information of the beneficial owners. Beneficial owners are individuals who directly or indirectly own 25% or more of the business OR who directly or indirectly control the business.
3. Act Now: With the deadline looming, get ahead of the rush and file your report NOW!
Need assistance? Contact us at 305.222-7282 or [email protected]. We’re here to help with both BOI report filings and navigating CTA requirements.
Also, please be sure to visit us at www.Ser-Associates.com and connect with us on Instagram, Facebook, and/or LinkedIn to see more ways we can support you and your business!
