If you’re a small business owner, you should be aware of critical new reporting requirements that went into effect on Jan. 1, 2024. They may require your business entity to report its beneficial ownership information to the Federal government. We’ve covered the important details you need to know. Keep reading to learn if you’re affected by the new requirements and how to fulfill them.
New Federal Reporting Requirement for Beneficial Ownership Information (BOI)
Beginning on Jan. 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., 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.
Do I Need to Report?
Most businesses are small businesses that may need to file. Your company may need to report information about its beneficial owners if it is:
- A corporation, 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 Indian tribe by such a filing.
When Do I Report?
Reports will be accepted starting on Jan. 1, 2024.
- If your company was created or registered before Jan. 1, 2024, you will have until Jan. 1, 2025, to report BOI.
- If your company is created or registered on or after Jan. 1, 2024 and before Jan. 1, 2025, you must report BOI within 90 days of notice of creation or registration.
- If your company is created or registered on or after Jan. 1, 2025 you must report BOI within 30 days of notice of creation or registration.
- If there is any change to the required information about your company or its beneficial owners in a BOI report that your company filed, your company must file an updated BOI report no later than 30 days after the date on which the change occurred. The same 30-day timeline applies to changes in information submitted by an individual in order to obtain a FinCEN identifier. A reporting company is not required to file an updated report for any changes to previously reported personal information about a company applicant. Furthermore, if Neely’s prepares your report, the following must be reported to our office no later than 10 days after a particular change so we can file the update report within 30 days to FinCEN.
How Do I Report?
Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi.
It’s important to note that this will be a free filing that companies can complete themselves. However, Neely’s is providing a service in which we will prepare your BOI report based on the information you provide. Please note that services for preparation of your return do not include auditing or verification of the information you provide.
What Could Happen if I Don’t Report?
There are significant penalties for missing filing deadlines, including criminal (fines and/or imprisonment) or civil (monetary) penalties. There is a $500 per day penalty, up to $10,000, and imprisonment of up to two years for the WILLFUL failure to timely file initial or updated reports.
Taxpayer Responsibilities
Finally, we wish to emphasize that we are making you aware of these new current reporting requirements, and associated risks. Neely’s Accounting will assume no liability stemming from your neglect on not filing this BOI report. If you choose to engage BOI services from Neely’s our firm assumes no liability stemming from your neglect on not providing applicable information as detailed above for filing the BOI report.
For more information about BOI reporting, and our reporting preparation services, please contact us or stop by our office.