Did you know there is a new reporting requirement, known as Beneficial Ownership Information (BOI) or you may have heard it called The Corporate Transparency Act, set to come into effect in 2024? It was created by Homeland Security to combat illegal activity.
What Do I Need to Provide?
For this filing, you’ll need to provide details for each beneficial owner, including their legal name, birth date, home address, identifying numbers from licenses, state IDs, or passports, and an image of the associated document. As a reminder, a beneficial owner is any individual who directly or indirectly exercises control over the reporting company or directly or indirectly owns or controls 25% ownership interests of the reporting company. In addition to beneficial owner information, you will need to provide company details such as its legal name, any “doing business as” (d/b/a) names, jurisdiction information, and taxpayer identification number.
When Do I Need to File This Report?
This filing is mandatory for all corporations (S corp or C corp), partnerships, and limited liability companies (LLC). If your company was formed before January 1, 2024, you have until December 31, 2024, to file this report. However, if you create a new LLC or company in 2024 you only have 90 days to file the report. Please note that this failure to file can result in fines of up to $10,000.
How Do I File?
The BOI report is separate from our annual tax or accounting services. As an accounting firm, we promote awareness of this requirement. Once you know of the requirement, you can take the necessary steps to comply. While we are not equipped to file this report on your behalf, we recommend the following options:
- Consult your attorney who set up your company. They will be able to guide you through the filing process.
- Consider using Legal Zoom, or another reputable service that can assist you with filing the report.
- If you prefer to file on your own, you can find the report at fincen.gov/boi
Learn more about BOI reporting using this link. Feel free to reach out to Leslie Welsh CPA, Inc. if you have any general questions about this report. We are always here to assist you in navigating the accounting industry changes that impact your business.
We look forward to helping you with your tax engagements soon!
The information in this article is general and is not intended as legal advice, nor is it endorsed by Eckert & Associates, P.A.
Leslie Welsh has over 20 years of experience as a CPA, helping clients with tax issues from small businesses to individuals. She enjoys helping clients save tax dollars and untangling federal and state tax issues.