Have you heard about the new IRS requirement that may impact your business?
Beneficial Ownership Information (BOI) Reporting
Established by the Corporate Transparency Act in 2021, this new reporting mandate is designed to help U.S. law enforcement combat money laundering, terrorism financing, and other illicit activities by ensuring transparency in the ownership of certain business entities.
What is BOI Reporting?
BOI Reporting requires disclosing beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This applies to individuals who own or control a company, specifically:
- Filing with a Secretary of State creates corporations, LLCs, or similar entities
- Most Small Businesses fall under these requirements, except for large operating entities that meet specific criteria (more than 20 U.S. Employees, over $5M in gross revenue, and physically present in the U.S.).
Who is a Beneficial Owner?
A beneficial owner is anyone who:
- Exercises substantial control over a reporting company, or
- Owns or controls at least 25% of the ownership interest of a reporting company.
When Must a Report Be Filed?
Depending on when your entity was created or registered, the timeline for filing is as follows:
- New entities (created/registered in 2024): Must file within 90 days.
- New entities (created/registered after 12/31/2024): Must file within 30 days.
- Existing entities (created/registered before 1/1/2024): Must file by 1/1/2025.
- Entities with changes to previously reported information: Must update within 30 days of the change or discovery of inaccuracies.
Why You Should File
Complying with BOI Reporting requirements can result in significant penalties, including fines up to $591 per day for willful non-compliance.
Next Steps?
To ensure your business remains compliant and avoid potential penalties, please visit https://www.chdean.com/boi-reporting/ or click the link below to contact C.H. Dean directly and fill out the form. Our team is ready to assist you with the reporting process and answer any questions.
Or feel free to call or email Tammy Doll directly:
Email: TSD@chdean.com
Phone: 937-225-8828