What is an BOI???
- tnytaxllc
- Dec 24, 2023
- 2 min read
Have you heard about the new federal filing requirement for businesses?
Starting in 2024, most businesses will be subject to the Beneficial Ownership Information requirements (BOI). The BOI is part of the Corporate Transparency Act, enacted in 2021, with the goal of preventing the misuse of anonymous shell companies for illicit purposes, including money laundering, tax evasion, and terrorism financing.
What is Beneficial Ownership?
Beneficial Ownership refers to individuals who directly or indirectly own 25% or more of a legal entity. The purpose of this regulation is to enhance transparency and prevent financial crimes such as money laundering and fraud.
What You Need to Know: As per the new regulations, businesses are required to identify and report the beneficial owners of their companies to the appropriate authorities. This means accurate information is needed regarding individuals who meet the criteria for beneficial ownership.
Non-exempt companies in existence as of December 31, 2023 (i.e., the end of this year) must submit a BOI report by January 1, 2025.
New Business Alert: Businesses established in 2024 must file within 90 days of receiving notice of the company's creation or registration.
Ensuring prompt compliance with this requirement is essential.
If your company falls under the scope of this act, you will be required to report specific ownership details to the Financial Crimes Enforcement Network (FinCEN).
This new requirement takes effect on January 1, 2024. The act also imposes civil and criminal penalties for providing false or fraudulent information.
Businesses not complying with beneficial ownership information reporting requirements can face stiff penalties. Any company that fails to file a required beneficial ownership report or amendment by its filing deadline is subject to a fine of $500 per day, up to a maximum of $10,000.
Please rest assured; you need not worry. We are here to assist you. We offer BOI compliance services to ensure your complete adherence to this new law. We encourage you to contact us to determine if your company is required to report.
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