Beneficial Ownership Information Reporting | FinCEN.gov

My comment - If you have an LLC, PLC, C, S, or corporate then you need to know this information. IMPORTANT FINANCIAL INFORMATION. New Tax Policies.

How to Avoid $591 a Day in Civil Penalties, $10,000 in Criminal Penalties, and Up to Two Years in Prison.

SUMMARY:

The new 2024 FinCEN beneficial owner information (BOI) reporting requirements.

Beneficial Ownership Information (BOI) reporting applies to affected entities in existence on January 1, 2024, as well as those created in 2024 and later. Whether these are single-member LLCs, small multi-member LLCs, small S corporations, or small C corporations, they may be required to provide detailed reporting on their beneficial owners—the humans who own or control these entities.

The new FinCEN reporting likely applies to your clients' businesses (and rental properties owned in LLCs). The details and nuances may shock you.

Small corporations and LLCs are those with

• 20 or fewer full-time employees.
• $5 million or less in domestic gross receipts reported on a prior tax return.
• A physical U.S. presence.

To ensure compliance, the penalties for willfully violating the Business Ownership Information (BOI) reporting requirements include

• Civil penalties of up to $591 for each day a violation is not remedied.
• A criminal fine of up to $10,000.
• Possible imprisonment of up to two years.

The new regulations are designed to enhance transparency, making it more difficult to conceal illicit activities through anonymous corporate structures. While you operate your businesses with integrity, you will nevertheless likely have to file with FinCEN and report any changes within 30 days.

The rules are effective for both new and existing entities in 2024
• New entities have to file within 90 days of formation.
• Existing entities have to file on or before January 1, 2025 (which is closer than you think).

Ignoring the new reporting requirements is not an option.