The Corporate Transparency Act (CTA) is proud to present...(🙄)
The Benficial Ownership Information Report
A reminder regarding the new Corporate Transparency
Act filing requirement:
the Beneficial Ownership Information (BOI) Report.
The penalty for inadvertent late filing is $500 PER DAY, up to $10,000; and the penalty for willful non-compliance can be up to two years in prison.
Those penalties are no joke folks - and the Financial Crimes Enforcement Network (FinCEN) arm of the U.S. Treasury is not messing around on this one.😬
PLEASE TAKE THIS FILING REQUIREMENT SERIOUSLY.
BACKGROUND
As of January 1, 2024, the Corporate Transparency Act (CTA) introduced the BOI Report. This new requirement mandates that individuals who own or control a "reporting company" report specific information about themselves and the company. The goal is to help the government monitor suspicious activities such as money laundering and fraud.
NEXT STEPS
All "reporting companies" established before January 1, 2024, must file an initial report with FinCEN (Financial Crimes Enforcement Network) by no later than January 1, 2025. "Reporting companies" are corporations, limited liability companies, and any other entities created or registered to do business by filing with the secretary of state or any similar office in the United States.
In other words, if you are an owner of or have control over an LLC, S-Corp, or C-Corp this applies to you - even if your entity only holds a piece of rental real estate.
When do I need to file a BOI Report?
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Businesses established before January 1, 2024: The initial BOI Report is due by January 1, 2025.
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Businesses established after January 1, 2024: You may need to file sooner.
Important: After your initial filing, if there are any changes to the information about the reporting company or its beneficial owners, an updated report is required within 30 calendar days of the change occurring. Changes include registration of a new business name, changes in beneficial ownership (new CEO or shift in ownership exceeding 25%), and changes to the beneficial owner's details (name, address, unique identifying number previously furnished to FinCEN like a driver’s license).
Please note that there are strict penalties for past-due filings, such as a hefty penalty of up to $500 per day for each day this form has not been filed.
How do I file my Initial BOI Report?
You can either:
a. File on your own (more information included below) or
b. Have 6Accounting file this on your behalf for $250 per "reporting company" plus $200 per "beneficial owner" (as defined by FinCEN)
Filing my own BOI Report
The FinCEN website states that they expect many, if not most, companies to be able to submit their own BOI reporting, especially business owners who are the sole owners of their companies. Please see below for the filing link and resources from the FinCEN website.
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Online Filing:
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Under “File Online BOIR”
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Guidance:
Make sure to save the confirmation page after filing for your records!
ENGAGING 6ACCOUNTING TO FILE MY INITIAL BOI REPORT
If you would like 6Accounting to file your initial report on your behalf, please contact us using the form below. We will only be accepting new BOI filing engagements until October 31, 2024.
A few important notes about 6Accounting's role in the BOI Filing:
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It is your responsibility to file all required BOI Reports, including initial, updated, and corrected reports.
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It is not 6Accountings responsibility to identify your filing requirement(s) for any of the initial, updated, or corrected reports.
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The analysis and determination of your specific filing requirements, or clarification on who would be classified as a 'reporting entity' or 'beneficial owner,' is beyond the scope of services a CPA is authorized to provide. We highly recommend you seek the advice of a licensed attorney. (Our principal and general counsel, Mario Pizzamiglio, Esq., CPA, CFP(r), is available for legal consultations at his normal hourly rate.)
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If you own or control multiple businesses, you may have to file multiple BOI Reports. 6Accounting's engagement is only for the filing of one (1) entity's BOI report. Multiple filings will require separate engagement letters and fees.
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If you are considering having 6Accounting file on your behalf and we do not get a clear response from you before Thursday, October 31, 2024, 6Accounting will not file your initial BOI Report.
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6Acounting will not engage in the review of a BOI Report that you prepared on your own.