New Requirements for Certain Business- BOI
There is one large change for anyone that has an S Corp, Corporation, LLC, Partnership, Trust, and anyone that would be registered with the Secretary of State when opening their entity. This must be completed online, but it is not due until the 1st of January, 2025. For most of you it is pretty straightforward, just a need to collect the information required. This requirement is mandatory and you can be accessed a penalty if you do not comply. Below is some information:
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Financial Crimes Enforcement Network Under Corporate Transparency Act (CTA) Financial Crimes Enforcement Network (FinCEN)
We are writing to inform you about the new Beneficial Ownership Information (BOI) reporting requirements that will be effective January 1, 2024. The BOI rule requires all S Corps, Corporations, LLC’s and Trusts to identify and verify the identity of beneficial owners of the entity. This will include any entity that files a document with the Secretary of State or similar office.
To comply with this regulation the following information will be needed. This reporting is done online and is mandatory. Any entity opened prior to January 1 has until January 1, 2025 to complete.
This new regulation will report ownership information as to who owns and control over the business. It was put into effect because it is believed it will help track criminal activity, aide for law enforcement and crack down on money laundering.
The information you will need:
- Legal Name and Trade Name
- State/When originally completed
- Complete current address
- IRS Taxpayer Identification Number (TIN)
You will need to identify Beneficial Owners. They are basically those that either directly or indirectly exercise substantial control over the business / owns more than 25% of the ownership interests.
The information needed for ALL beneficial owners include:
- Legal name
- Date of Birth
- Complete current residential address
- ID (passport or driver's license)
- Image/Picture of the identification. (Copy is required)
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This is basically a summary of the necessary information to be in compliance. Obviously, there are many other items, but most don’t apply in a majority of the cases.
Website for filing: https://boiefiling.fincen.gov