We have gotten a lot of questions regarding BOI (Beneficial Ownership Information) notices from self-employed individuals, so here’s the scoop…
TL;DR – If you own a business, you likely are required to file BOI with FINCEN, so keep reading!
If your business is registered in any state, you are required to file with the Dept of Treasury Financial Crimes Enforcement Network (FinCen). The registration is part of the Corporate Transparency Act listing the Beneficial Owners of every business. Although there are lawsuits on-going questioning the constitutionality of this law, there has been a court ruling that it is constitutional, and that ruling is now in Appeals. Use your own judgement of whether or not you will comply now or wait for the outcome of the appeal, but we at Tax Facts urge you to follow the requirement because 1) we expect the appeal to lose, and 2) the fine for NOT complying is $591 PER DAY.
Here are the rules:
1. If you are an LLC, S-Corp, or C-Corp you are required to register the owners of the business
2. If you are an existing business, you must file by Dec 31, 2024
3. If your business was formed during 2024, you were required to file within 90 days of forming the business. (Assuming you did not because you didn’t know better, file by Dec 31, 2024)
4. If you form a business in 2025, you must file within 30 days of receiving the state’s acceptance.
Go to https://www.fincen.gov/boi to e-file. It’s not a big deal. They are simply collecting information on who owns businesses. Happy Halloween everyone!