In case you haven't heard by now, the U.S Department of Treasury's Financial Crimes Enforcement Network (FinCEN) is now requiring that business owners file what's called a Beneficial Ownership Informational (BOI) Report. Here's a link to the Press Release announcing the Public Service Announcement campaign.
Great...right? One more thing for small business owners to add to our 'to do' list that's already a hundred miles long. <..sigh..>
Here's the TLDR:
Starting on January 1, 2024, this new rule requires small businesses to share information about their owners with FinCEN. This is to prevent the misuse of businesses for illegal activities.
Who Needs to Report?
If you own a business that is an LLC, or an SCorp, that was created and registered in the U.S through your Secretary of State, you most likely need to file this report.
Because sole proprietorships, trusts and general partnerships do NOT require the filing of a formal document with the SOS, they generally are not considered a reporting company and do not have to file a BOI.
Also, larger businesses with over 20 employees, a physical office, and $5 million in revenue are usually exempt.
What Information Is Required?
Companies must provide names, birth dates, addresses, and ID numbers of those who own or control at least 25% of the business. For new companies, the person filing the registration must also provide this info.
Important Deadlines:
- January 1, 2025 - if your company was set up before 2024.
- New companies created and registered in 2024 must report within 90 days of starting.
- If you're thinking of forming a company after 2024, you'll need to file this report within 30 days.
How to File:
Thankfully it's pretty simple to do online. I filed mine and it took less than 10 minutes, seriously! Click below to submit your Beneficial Ownership Information (BOI) report online.
FILE YOUR BOI Report
And it doesn't cost anything to file. Thank goodness!
For more information, check FinCEN's Small Business Resources. If you have questions, I can point you to a legal expert who can help.
That's all for now folks! Have a wonderful week!