New Business-Ownership Reporting Requirements! What you need to know:

The federal government has introduced a new mandate requiring companies to report information to the Financial Crimes Enforcement Network (FinCEN) a division of the US Treasury Department, about the individuals who ultimately own or control them. This is a significant change, and it’s important to understand what it means for you and your business.

 Who Needs to File?

If you own an LLC, LP, LLP, or corporation, you are likely required to file a Beneficial Ownership Information (BOI) Report. This report must detail individuals with a control or ownership stake in your company. A beneficial owner is defined as someone with at least 25% ownership or substantial direct or indirect control. This includes key decision-makers, senior officers, or those with authority over officer appointments, among others.  

 Also, important to note, if you have an subsidiary companies, they will also be required to file separately.

Exemptions

It’s worth noting that certain entities, such as publicly traded companies and tax-exempt nonprofits, are exempt from this requirement. If you fall into one of these categories, you do not need to file a BOI Report. While there are certain limited exceptions, the majority of companies will be required to file. 

What Information is Required?

The BOI Report must include comprehensive details about your company and the beneficial owners. This includes:

• Company details: Name, address, and other pertinent information. 
• Personal information of owners: Full names, birth dates, addresses, and identification documents such as a driver’s license or passport. 

 Important Deadlines

 The BOI filings must be submitted by  December 31, 2024. 

What happens if I don’t comply?

Non-compliance can have serious consequences, including civil penalties of $591 per day, fines up to $10,000, and imprisonment of up to two years for willful violations. FinCEN began accepting these reports on January 1, 2024.

 And it’s not a one and done — Keep Your Information Up-to-Date

If any information in your original report changes, you are required to update FinCEN records within 30 days of the change. This ensures that FinCEN has the most current information about your company’s ownership and control. We can provide recommendations to assist you with this requirement too.

 Filing Your Report

You have two options for filing your report:

1. File it yourself: You can handle the reporting process independently if you are comfortable doing so. 
2. Let us help: Our service can take care of the entire process for you for only $200 per entity. We provide legal expertise and ensure that your business is incompliance with all requirements. This can save you time and give you peace of mind.  We can also offer advice on how to stay compliant with your ongoing obligations.

Need Assistance?

If you have any questions or need assistance with your BOI filing, please reach out. We are here to help. You can respond to this email or call our office for more information. We are here to help ensure your business complies with these new federal requirements. Stay informed and stay compliant to avoid penalties and keep your business running smoothly. As always, Loutel can help.