The Corporate Transparency Act, created by the US Treasury Department in 2021, was formed to track illegal financial transactions and money laundering. The Federal Government is requiring each Individual Owner and each Beneficial Owner of all Corporations and LLCs to file a Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Identification statement AND THE DEADLINES ARE IMMINENT! So what is BOI?
Here are the FAQs about BOI filing requirements:
Who is required to report under the CTA’s BOI reporting requirement?
All domestic and foreign entities that have filed formation or registration documents with a U.S. state or Indian tribe, unless they meet one of 23 enumerated exceptions.
When must Companies file?
–Corporations and LLCs created/registered in 2024 must file within 90 days of formation.
–Corporations and LLCs created/registered after Dec. 31, 2024 must file within 30 days of formation.
–Corporations and LLCs created/registered before Jan. 1, 2024 must file by Jan. 1, 2025.
–Companies that have previously registered are required to report ownership changes within 30 days.
What information do Companies need to report?
–Full legal name of the reporting Company and any trade or DBA names
–Business address
–State or Tribal jurisdiction of formation or registration
–IRS TIN
What information is required for Beneficial Owners for each Reporting Company?
–Name
–Birthdate
–Address
–Unique identifying number and issuing jurisdiction from an acceptable identification
–(Document from Secretary of State and IRS)
–Image of Certificate of Formation Document
What are the penalties for non-compliance with the Statute?
–Civil penalties are up to $500 per day.
–Criminal penalties are a $10,000 fine and/or up to two years of imprisonment.
As Business Founders, Owners and Entrepreneurs of active or passive Corporations and LLCs, we juggle the development, management, creative, sales, financial and too many others to list. Obviously we’re all busy, but the point of this, my valued clients, friends and fans, is to not miss BOI filings and deadlines. So, contact me to help and we’ll get it done or answer any questions you have regarding the filing process….unless, of course, you turn out to be laundering money!