Please read to ensure that your LLC, Partnership, S Corporation, or C Corporation files its' Beneficial Ownership Information (BOI) Report by the deadline to avoid costly penalties.
Does it ever feel like you are being swallowed up by paperwork to satisfy all the IRS and State filing requirements? Are you worried that you will miss something? Let me help you!
First, take a deep breath. Yes, there are many tax and legal requirements that you need to stay on top of as a small business owner or sole proprietor. But you don't have to do it alone. If you become one of my clients, I can help ensure you not only keep your head above water, but actually help you become a confident swimmer!
If you are tired of being overwhelmed trying to keep track of your finances, budgets, taxes or legal filings by yourself, then let me help you. If you are worried you are missing something, or "don't know what you don't know", then let me help you. Schedule an exploratory call today:
Now on to the topic of this Beneficial Ownership Information Report (commonly referred to as BOI):
This is a new requirement this year, 2024!
The Beneficial Ownership Information (BOI) report is a filing requirement under the Corporate Transparency Act (CTA) enacted by Congress beginning with 2024. This report must be filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
Companies required to file include most Corporations, Limited Liability Companies (LLCs), and other similar entities that are created by filing a document with the Secretary of State or similar office in the U.S. (or foreign entities registered to do business in the U.S.)
So, if you have an LLC, S Corp, C Corp, Partnership, PLLC, or other similar entity you are using to transact your business activities under, keep reading. If you are a Sole Proprietor who has never filed a document with a State to create a legal entity for your business, this requirement does not pertain to you (although you should keep reading if you intend to create an LLC or other legal entity for your business in the near future).
Who else is exempt (excluded) from this filing requirement?
Large Operating Companies with more than $5m in gross receipts
Publicly traded Companies (on the stock market)
Banks and Credit Unions
Securities Brokers/ Dealers
Investment Companies/ Advisers
Insurance Companies
Public Utilities
Tax-Exempt Entities
A full list of who is and who isn't required to file this report can be found by going to the Financial Crimes Enforcement Network website: Beneficial Ownership Information Reporting | FinCEN.gov but it's a bit cryptic so keep reading while I help you decide if you are affected....
Here is the way I think of it... If you own a business (with a State created legal entity) that is already highly regulated by any government agency, this does not apply to you. If you own a business (with a State created legal entity) that is not highly regulated by a government agency (the IRS is excluded, they have dibs on everyone), this most likely applies to you.
The intent behind this new filing requirement is to enhance transparency by identifying individuals who are operating companies on U.S. soil. Basically, the Government wants to know who you are and what you are doing to prevent the misuse of corporate structures for illicit activities such as money laundering, tax evasion, financing terrorism, etc.
Here is a flowchart that can also help you decide if you qualify as a "Reporting Company" (i.e. are required to file this BOI Report):
If your eyes cross looking at this flowchart, go back to the summary I wrote earlier, and/or go to the FinCen website and read more about it. If you still need help, email me. I don't want anyone to miss filing this report when they are required to file it.
If you determine this requirement includes your business, here are the filing deadlines:
If your State-created legal entity was formed BEFORE January 1, 2024, you have 1 year (December 31, 2024) to file this report.
If your State-created legal entity was formed DURING 2024, you have 90 days from the creation date to file this report.
If you obtain a State-created legal entity in 2025 or future years, you have 30 days from the creation date to file this report.
What are the penalties of not filing this Report when you are required to file?
$500 fine per day until filed, up to $10,000 (yikes, do the math... if you are ONE WEEK LATE, that is a $3,500 fine!)
Up to 2 years in prison (even bigger yikes!)
Okay, so if I have sufficiently convinced you to file this report (do not ignore it!), then the big question is HOW do I file?
You can file online by using the Financial Crimes Enforcement Network (FinCen) by going here: Beneficial Ownership Information Reporting | FinCEN.gov
However, like most Government websites, it can be overwhelming to navigate this website and actually figure out how to file (and file it correctly). I have been helping my clients file their BOI Reports correctly. I can help you too:
Schedule a 25-minute BOI Report Filing session with me between now and December 31, 2024! I have this filing down to a science after filing so many!
What is the cost of the BOI Report Filing Session?
If you are a current Accounting or Coaching client, there is no cost. Input the code SOULCLIENT when you are checking out.
If you are a current Tax client, the cost is $88. Input the code TAXCLIENT when you are checking out.
If you are not a current client, the cost is $111. (Most CPAs I know are charging $200+ for this report by the way!)
Freedom is a wonderful thing.... Be free from worry and file this BOI Report today.
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