In 2024, a new piece of legislation is set to impact small and medium-sized businesses across the U.S. The Beneficial Owner Information (BOI) reporting requirement, issued by FinCEN (Financial Crimes Enforcement Network), mandates that most companies disclose personal identifiable information of their beneficial owners. This is a significant change that can carry severe penalties, including fines up to $10,000 and even imprisonment for non-compliance.
So, what exactly does this mean for your business?
Who Needs to Comply?
If you own an LLC, partnership, or S-corp in the United States, this new regulation likely applies to you. Exceptions exist, but for most small and medium-sized businesses, reporting BOI is now a legal obligation.
What Is Required?
You’ll need to report the personal information of all beneficial owners in your company. This might sound straightforward, but it can get complicated if your ownership structure involves multiple layers, such as other companies or trusts. In those cases, you must trace ownership down to the individual level and report that person’s information.
Pro Tip: Get a FinCEN ID Number
To simplify the process, I recommend obtaining a FinCEN ID number for each individual involved in your business. This ID can be used whenever you need to report BOI, making the process smoother and more secure.
Why You Should Act Now
This legislation is complex and the penalties for non-compliance are steep. I strongly encourage you to consult with a trusted CPA or attorney to ensure your business meets these new requirements.
For a more detailed explanation, check out my video where I break down the BOI reporting process and share some practical tips:
Don’t wait—get ahead of this legislation to protect your business from costly penalties. If you have any questions or need assistance, feel free to reach out.
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