by Cindy Goldstein -
Do you own a business? If so, you’ll probably need to file a Beneficial Ownership Information Report (BOIR) before January 1, 2025. After this initial filing the form must be filed each year.
Who Must File
Corporations, limited liability companies (LLCs), limited liability partnerships (LLPs) and many limited partnerships are subject to the new rules. Tax exempt entities do not need to file. Anyone who owns or controls at least 25% of the company must be included in the report. For more information, see it HERE.
What Information Do I Need?
The BOIR asks for each beneficial owner’s legal name, date of birth and address. A copy of each owner’s driver’s license and/or passport must also be provided. No financial information is required.
Penalties are Significant
If you miss the filing deadline there are significant penalties that can be as much as $500 per day. Additionally, criminal penalties are stiff – fines up to $10,000 and imprisonment for up to two years. Some penalties may be waived for mistakes or omissions if promptly corrected but don’t count on that – make sure you file on time.
Why Do I Have to Prepare This Filing?
Collecting this information is meant to protect national security by making it easier to find corruption, money laundering operations, tax evasion, and drug trafficking organizations. This ownership information will be shared with approved agencies including Federal and State law enforcement and Federal tax authorities.
How Do I File?
You must file the report online at https://boiefiling.fincen.gov/fileboir. Beware of random unsolicited offers to do the filing for you. There are many scams out there!
Editor’s Note: This article is intended to be a courtesy alert to the new required filing. It is not a substitute for legal or tax advice. Please consult your own advisor.
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