In the wake of the Beneficial Ownership Information (BOI) reporting requirements implemented earlier this year, business owners need to stay ahead of the curve.
As a refresher, BOI reporting mandates that certain entities, including Limited Liability Companies (LLCs) and Corporations, disclose their beneficial owners to government authorities. Beneficial owners are individuals who directly or indirectly own or control at least 25% of the entity.
The deadline for entities created or registered before January 1, 2024, is fast approaching. You must file your initial BOI report by January 1, 2025. For entities registered between January 1, 2024, and January 1, 2025, you have 90 days from the date of creation or registration to file. Starting January 1, 2025, new entities will have only 30 days to comply.
Non-compliance carries significant penalties, including fines of $500 per day, per entity. Accurate and timely reporting is crucial. Transparency in your business operations builds trust with stakeholders and contributes to a fair and accountable business environment. Moreover, these regulations help prevent financial crimes by identifying the individuals behind corporate structures.
To assist with this transition, here are some practical next steps:
- Review Ownership Structure: Ensure you have up-to-date information on all individuals who qualify as beneficial owners under the new regulations.
- Prepare Documentation: Gather necessary documents and information, such as ownership percentages and personal details of beneficial owners.
- Consult a Professional: Seek advice from a CPA or legal advisor familiar with BOI requirements to ensure all aspects of your report are accurate and complete.
- File Timely: Use the official BOI filing portal at www.fincen.gov/boi to submit your report. Consider professional assistance to avoid errors and ensure compliance. David A. Santini, CPA LLC can provide this service for a fee.
Staying proactive about these requirements will help you avoid penalties and enhance your business’s credibility.