In the effort to fight crimes and frauds, Congress pass the law that requiring LLCs and corporations to show who run the company/and who gets the money.
Failure to report this information can result in significant penalties: a fine of $500 or more per day. Additionally, violations of the BOI reporting requirements can lead to imprisonment for up to 2 years and fines up to $10,000.
Be sure to meet the reporting deadlines to avoid these serious consequences.
If your company registered to do business before January 1, 2024, you will have until January 1, 2025, to file its initial BOI report.
If your company registered in 2024, you will have 90 days to file after receiving actual or public notice that its creation or registration is effective.
If your company registered on or after January 1, 2025, you will have 30 days to file after receiving actual or public notice that its creation or registration is effective.
Fox Tax Service can help you taking care of it quickly at minimal cost.
Please call or text Lokus at 515-988-0716
A. General Questions
A. 1. What is beneficial ownership information?
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.
Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?
Congress pass this law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.
Who can access beneficial ownership information?
FinCEN will permit Federal, State, local, and Tribal officials, as well as certain foreign officials who submit a request through a U.S. Federal government agency, to obtain beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement. Financial company will also get access to it with the consent of the reporting company.
What companies required to report beneficial ownership information?
Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
What companies does not need to report beneficial ownership information?
23 types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain large operating companies.
The following table summarizes the 23 exemptions:
| Exemption No. | Exemption Short Title |
|---|---|
| 1 | Securities reporting issuer |
| 2 | Governmental authority |
| 3 | Bank |
| 4 | Credit union |
| 5 | Depository institution holding company |
| 6 | Money services business |
| 7 | Broker or dealer in securities |
| 8 | Securities exchange or clearing agency |
| 9 | Other Exchange Act registered entity |
| 10 | Investment company or investment adviser |
| 11 | Venture capital fund adviser |
| 12 | Insurance company |
| 13 | State-licensed insurance producer |
| 14 | Commodity Exchange Act registered entity |
| 15 | Accounting firm |
| 16 | Public utility |
| 17 | Financial market utility |
| 18 | Pooled investment vehicle |
| 19 | Tax-exempt entity |
| 20 | Entity assisting a tax-exempt entity |
| 21 | Large operating company |
| 22 | Subsidiary of certain exempt entities |
| 23 | Inactive entity |
Here is a hundred pages you can read on BOI from Fincen(The Financial Crimes Enforcement Network)
https://www.fincen.gov/boi-faqs#A_1
If you don’t have time to deal with it give us a call. 515-988-0716. No need to loosing sleep over it.
