FinCEN's Nose Is All In Your Business

Are you aware of the new reporting requirements for corporations and limited liability companies? The Financial Crimes Enforcement Network (FinCEN) may require your business to report its beneficial ownership information (BOI) to the Federal government. Yes, you heard me correctly; the Feds are getting in your business in 2024!

Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. They will have to report the information to FinCEN. FinCEN is a bureau of the U.S. Department of Treasury.

Your company may need to report information about its beneficial owners if it is:

• A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or

• A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

Who qualifies as a beneficial owner? A beneficial owner is an individual who owns or controls at least twenty-five percent (25%) of a company or who has substantial control over the company.

The reporting requirements are effective as of January 1, 2024 and non-compliance carries some pretty hefty penalties (criminal and civil). Failure to report your BOI could incur civil penalties of up to $500 USD for each day that the violation continues or imprisonment for up to two (2) years and/or a fine of up to $10,000 USD.

If you formed your company prior to January 1, 2024, your deadline to file your report is January 1, 2025.

If your company was formed on or after January 1, 2024 and before January 1, 2025, you have ninety (90) calendar days after your company's formation effective date to file.

If you form your business on or after January 1, 2025, you have thirty (30) days after your company's formation effective date to file.

But there is no need to fret. The Ashley Firm is here to help. Leave the reporting to us! You can focus on making your company money instead of time consuming reports. Call The Ashley Firm at 972-849-8888 or email us at theashleyfirm@gmail.com today to complete your BOI reporting.