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As we approach the final countdown to the Beneficial Ownership Information (BOI) reporting deadline, we want to ensure every client understands the necessity of this requirement and its broad applicability. Whether you own a large corporation or a smaller entity like an LLC that holds real estate, this new reporting regulation impacts a wide range of businesses and owners.
Why is BOI Reporting So Important?
The BOI requirement, part of the Corporate Transparency Act, isn’t limited to big businesses or multi-tiered corporations. It includes even smaller entities, such as single-member LLCs that may own real estate or rental properties. This far-reaching mandate means that if you have a stake in an LLC, corporation, or other eligible entity, you likely need to take action by January 1, 2025.
Examples of Impacted Clients:
- Single-member LLCs holding a property portfolio or rental units
- Small family-owned corporations
- Businesses with minimal ownership complexity
In our experience, many clients who might not consider themselves “high profile” are still subject to BOI reporting. That’s why understanding and acting on these requirements is critical.
Immediate Compliance Required for New Entities Set Up in 2024
If your entity was set up in 2024, the timeline for BOI reporting differs. New entities are required to file their BOI reports within 30 days of registration, not by the general January 1, 2025, deadline. This means that if your LLC, corporation, or other entity was recently established, it’s essential to file your BOI report promptly to avoid penalties. Please reach out if you’re unsure of your specific requirements.
Key Articles on BOI Reporting
For those who have been following our updates throughout the year, we’ve published a series of articles that break down the various aspects of BOI reporting:
- Simplifying the Corporate Transparency Act: What Your Business Needs to Know —This article provides a broad overview of the Corporate Transparency Act, explaining its goals and implications for all businesses, from small entities to large corporations. We focus on the "who, what, when, and why" of BOI reporting.
- Further Insights into BOI Reporting: Understanding the Role of a FinCEN Identifier — For businesses looking for a streamlined approach to reporting, this post dives into the FinCEN Identifier, a unique code that can simplify the process for businesses with complex ownership structures. If you’re considering this option, this is a must-read.
- Shedding Light: Updated Guidance on Beneficial Ownership Information Reporting Requirements — As the BOI reporting requirements evolved, we updated our guidance to keep clients current. This article breaks down the latest instructions from FinCEN, helping you understand the specifics you need to include in your filings.
Important Note! Deadline Extensions for Natural Disaster Victims
An important update for any clients affected by recent natural disasters: the deadline for BOI reporting may be extended. FinCEN has granted extensions for individuals and entities in areas affected by hurricanes and other natural disasters. For more details, please refer to the official FinCEN notice here. If you’re in an affected area, please reach out to discuss how this extension might apply to you.
Your Next Steps: Act Now to Ensure Compliance
With the January 1, 2025, deadline fast approaching, now is the time to review these resources, evaluate your reporting requirements, and take action to secure compliance. If you need further assistance or would like to discuss your specific situation, please reach out to us. We’re here to guide you through this new regulatory landscape and ensure you’re fully prepared.
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