top of page

Beneficial Ownership Information Report - Quick Breakdown

Updated: Jan 15




There is a new filing requirement in 2024 for LLC’s, and many folks are being caught off guard. Who all is affected? Well, 99% of the small business registered to do business in the US will be required to comply! And the penalty for noncompliance is $500/day up to $10,000!


It’s all an effort to prevent terrorism, money laundering, and other illicit activities. The Financial Crimes Enforcement Networks (FinCEN) will do this by permitting Federal, State, Local, and certain Foreign Officials to obtain “Beneficial Ownership Information” (BOI) by submitting a request through the applicable government agency.


Reporting Personal Information

Basically, anyone with 25% or more ownership in the entity MUST provide their detailed personal information for an accurate submission of this form.

Another way personal information may be required for an individual is when they exercise substantial control. This is where the waters muddy. If a person is a senior officer or has the ability to appoint or remove certain officers they have substantial control. If the individual is a decision-maker for the company or maintains any other form of substantial control they are considered to maintain substantial control.





Click HERE to visit the BOI frequently asked questions related to Beneficial Ownership Reporting including the 23 types of business that are exempt. Or Click HERE for the FinCEN Compliance Guide. Or Scan the QR code for more information from FinCEN.



Reporting Companies

Domestic reporting companies: Corporations, limited liability companies (LLC), and any other entities created by the filing of documents with a secretary of state or any similar office in the United States.

Foreign reporting companies: entities formed under the law of a foreign country that have registered to do business in the United States by filing a document with a secretary of state or any similar office.


Filing Frequency

Filing may only be required one-time. Currently, only unless the beneficial ownership changes would additional fillings be required. If that happens, you’ll have 30 days to complete a new filing.


Company Applicant

Only reporting companies that are created or registered after January 1st, 2024 will need to report their company applicant. A reporting company will have only up to two individuals who can qualify as company applicants:

The individual who directly files the document that creates or registers the company.

If more than one person is involved in the filing, the individual who is primarily responsible for directing or controlling the filing. It MUST be noted that a company applicant may not be removed from a BOI report even if the company applicant no longer has a relationship with the reporting company.



The Breakdown


When to File

·         Companies created prior to 1/1/24 have until 1/1/2025 to file the BOI Report.

·         Companies registered on or after 1/1/24 and before 1/1/25 must file the initial BOI Report within 90 calendar days after receiving the entity creation notice. Companies formed after 1/1/25 are allotted only 30 days.


What to File

Companies Created before 1/1/2024: The entity provides information about itself, and its beneficial owners.

Companies created after 1/1/2024: The entity provides information about itself, its beneficial owners, and the company applicants responsible for registration of the entity.


Notes:

A parent company cannot file a single BOI report on behalf of its group of companies. Each entity has its own separate reporting requirements. Rental properties established as an LLC are ALL required to comply. For owners rentals who have established multiple LLCs be ready to file the BOI Report for each entity to maintain compliance!

 

Have Rangeview Handle It

Rangeview Tax & Accounting is registered with FinCen to file the Beneficial Ownership Information Report for clients and we have the resources in place to do so. In addition to the filing, we will record your unique filing identification number, and maintain records of the filing(s). Our non-client fee for filing & maintenance is $200 for the first LLC. (discounts available for multiple filings.) If you’d Rangeview to handle this filing for your LLC(s) please click the button below, schedule our initial chat, and make your payment.



(initial fee is for the filing of one LLCs BOI report)


If we prepare your return, we will offer this service at our standard hourly rate of $150/hr. when done alongside this year's tax return.




Book a Free Discovery Appointment

See if Rangeview Tax & Accounting is a good fit for you with a Free Discovery Chat! We offer in-person, on-site, and telephone discovery chats. On site chats are typically business with exceptions available under appropriate circumstances for individuals.

 

Book a Paid Consultation

Our paid consultation is $50 and puts you on the line with a tax professional who will answer questions that you have related to IRS Code, and Tax Strategies. Pay for your consultation, select one of the available appointments, and provide the general topic of discussion or questions that you wish to discuss. If you choose to move forward with our services, we will credit the consultation fee towards a future tax return preparation.

Tax Projections

Stay on top of the upcoming filing season with a tax projection! We will collect various data including current pay stubs, expected business income, and more extraordinary situations like selling a home, rental, or business. From there we annualize the figures and run a mock tax return to get a good idea of an expected tax liability. This gives us a baseline in which we can further advise tax planning strategies that may apply.

111 views0 comments

Recent Posts

See All

Comments


bottom of page