05/21/2024
NOTICE TO BUSINESS OWNERS:
Earlier this year, I sent a notice out to any clients I was aware of having or operating a formally organized entity. The more I have discussed the issue with folks, the more it has become apparent that this has been poorly publicized for the lay person. I'm dropping into this post the notice I sent clients and if you or anyone you know has an LLC, corporation, partnership, or any other kind of formal entity that is not a non-profit, make sure you look into filing this report. Reach out if you want help, I have been filing these for clients.
"Beginning January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) for the United States is requiring that business entities organized in any state or territory of the U.S. complete a registration. I have taken the liberty of making you aware of this requirement as the penalties enforced against entities who do not comply with this reporting requirement can be severe, including fines of up to $500.00 per day and jail time.
This report is known as the Business Ownership Information Report (BOIR). You can file this report online at https://www.fincen.gov/boi
Important things for you to know about this report include the following:
• Who – An entity organized in the U.S. will need to report the beneficial owners of the company as defined by FinCEN. There are some exceptions and certain entities may be exempt from this requirement. The public will not have access to the information in this report. It will only be provided to law enforcement agencies upon request.
• Where – you can file this report using the link provided above.
• When – If your entity was organized prior to January 1, 2024, you are required to file your report before December 31, 2024. If your entity is organized after January 1, 2024, you will have a grace period of 90 days to file the report. After January 1, 2025, the report will be due within 30 days after organization.
• How Often- this is not an annual report. Unless there is a change to the information that needs to be provided or an update, the report must only be done once.
• FAQ’s – You can find answers to frequently asked questions concerning this report at the following link: https://www.fincen.gov/boi-faqs
• Cost – there is no cost from FinCEN to register the BOIR.
• WHY?? - FinCEN says this is 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."
Many companies are required to report information to FinCEN about the individuals who ultimately own or control them. FinCEN began accepting reports on January 1, 2024. Learn more about reporting deadlines.
