January 1 deadline approaching for reporting Beneficial Ownership Information
I hadn't heard of this before, so I thought I'd pass it on. Filing the report was pretty easy. Fines are $500 if you do not report your business by the end of the year.
https://www.taxpayeradvocate.irs.gov/news/tax-news/january-1-deadline-approaching-for-reporting-beneficial-ownership-information/2024/10/
"Are you one of one of millions of business owners who are affected by the Corporate Transparency Act (CTA)? If so, you may be required to report Beneficial Ownership Information (BOI) to Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN has launched a nationwide public service campaign to bring this information to potentially impacted business owners. It is imperative that you are aware of the FinCEN reporting requirements and know where to access additional information. Failure to file (timely or at all) may result in hefty penalties.
What is the Corporate Transparency Act (CTA)?
The CTA was enacted in 2021. Its purpose is to create business ownership transparency by identifying individuals who have either direct or indirect ownership (“beneficial ownership”) in a company. The overall goal is to alleviate fraudulent and illegal activities. FinCEN began accepting BOI reports through their website in January 2024.
The CTA requires most existing U.S. businesses and foreign businesses that have registered to do business in the U.S. to disclose the required beneficial ownership information.
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.
The timeframe for newer businesses to file is shorter. Companies created or registered in 2024 have 90 days to file this information, and those created or registered after January 1, 2025, have only 30 days to file.
Who is a Beneficial Owner?
A Beneficial Owner is anyone who directly or indirectly exercises substantial control over or owns or controls at least 25 percent interest in a business.
An individual exercises substantial control over a reporting company if they fall into any of the following categories:
The individual is a senior officer;
The individual has authority to appoint or remove certain officers or a majority of directors;
The individual is an important decision-maker; or
The individual has any other form of substantial control.
FinCEN provides additional details about each of these four reporting categories.
What companies are required to report under the CTA?
A company may need to report information about its beneficial owners if it is:
A corporation, a limited liability company, 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 Tribal jurisdiction; or
A foreign company registered to do business in any U.S. state or Tribal jurisdiction by such a filing."
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