BENEFICIAL OWNERSHIP INFORMATION REPORTING REQUIREMENTS

In 2021, Congress passed the Corporate Transparency Act, which created a new reporting requirement that businesses and certain other entities must report the Beneficial Ownership Information(BOI) to the Financial Crimes Enforcement Network(FinCen). The goal is to increase transparency about who controls or owns an entity, making it more difficult to conceal illicit activities, such as money laundering.

 

Who Must File: 

Unless exempted, any entity that files with the secretary of state, such as corporations and LLCs. 

Entities Exempted From Filing Requirements: 

Large Operating Companies which are defined by having:

  • More than 20 full time employees

  • Domestic Gross revenue/sales over $5 million on the prior year’s tax return: AND

  • An operating presence at a physical location in the United State

Tax-exempt organizations and entities assisting a tax-exempt entity

Entities already heavily regulated, such as banks, insurance companies, investment advisors, lawyers, CPAs, etc. 

When to File: 

Existing entities (created before January 1, 2024) have until December 31, 2024 to complete the filing.

Entities created after January 1, 2024, must file within the first 90 days of the creation of the entity.

Changes to any of the BOI information must be reported within 30 days of the change.

 Where to File: 

BOI reports are filed electronically through the FinCen website https://fincen.gov/boi

 Failure to File: 

Civil penalties are $591 per day with a maximum of $10,000 per entity.

Criminal penalties for willful violations include up to two years in prison.

 How We Can Help:

We will work with you to:

  • Determine if you are subject to this reporting requirement

  • Compile the information and documents necessary to file the report

  • Complete the report on the FinCen website

 

Our fee for the initial filing will be $595. Our fee for reporting changes and updates to any BOI information (required to be reported within 30 days of the change) will be $299.

 

We invite you to contact our office if you have any questions or would like to discuss this further.