Important new reporting requirements for businesses

We want to make sure you know about a new regulation that might affect you - the Beneficial Owner Information (BOI) reporting requirement. It's surprising how little attention this is getting, especially considering non-compliance can result in penalties of up to $500 per day.

While we won't dive into all the details since it falls outside our field of work, we want to ensure you're aware and can take the necessary steps.

***This regulation only applies to current/future business owners or individuals with "substantial control" over a business. ***

 

 

What is this new regulation?

In 2021, Congress enacted the Corporate Transparency Act in an attempt to curb illicit finance.

The act requires companies to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury

Note - This does not involve the Internal Revenue Service or state tax reporting agencies and is not included in your annual income tax files.

Who is a Beneficial Owner?

Beneficial Owner is defined as any individual who: 1) directly or indirectly exercises 'substantial control' over the reporting company, or 2) directly or indirectly owns or controls 25% or more of the 'ownership interests' of the reporting company.

Who has to report?

A corporation, limited liability company (LLC) or other entity that requires registering with the Secretary of State (DBA, etc).

There really is no way to sugarcoat this - this will impact every business mentioned above and will potentially include multiple individuals involved in the business. 

When do businesses have to report?

If you currently own (or are potentially involved in) the business types above, then the business has until 1/1/2025 to file a report.

If you start, or potentially become involved in a new business of the types mentioned above during 2024, then the reporting must take place within 90 days.

Although it's not an annual requirement, any updates or changes must be reported within 30 days.

What if I don't file?

There are severe consequences that can be assessed for noncompliance, including a penalty up to $500 per day.

Where can I learn more?

The reporting can be done directly on the FinCEN website at: www.fincen.gov/boi.  The website also contains more information.  FinCEN can be contacted at: 800-767-2825. 

**Please understand that you are responsible for this filing. Eagle Wealth will not be involved in this reporting.***    

We urge you to visit the FinCEN website, learn more, stay in compliance, and stay current when changes take place.