December 31, 2024 Deadline Reminder To Business Owners: New Mandatory FinCen LLC Reporting Requirements
December 31, 2024 Deadline Reminder To Business Owners: New Mandatory FinCen LLC Reporting Requirements
As we have posted multiple times this year, if your business was formed before January 1, 2024, you must submit this report by January 1, 2025 to avoid incurring penalties. For businesses formed on or after January 1, 2024, reporting must be completed within 90 days of formation. Companies formed after January 1, 2025, will need to file within 30 days of their creation.
What is FinCEN BOI Reporting?
The Financial Crimes Enforcement Network (FinCEN) now requires most U.S. companies to submit Beneficial Ownership Information (BOI) under a new law called the Corporate Transparency Act. This law aims to strengthen efforts against money laundering, terrorist financing, and other financial crimes.
Who Does This Affect?
The requirement applies to most U.S. entities, including corporations, LLCs, S-corporations, LLPs, trusts, holding business entities, and other legally created businesses. Even if your entity does not need to file a tax return, it may still need to comply with BOI reporting if it’s a legally formed entity, such as an LLC holding real estate or intellectual property. Certain entities may be exempt, and you can check eligibility for exemptions here: Beneficial Ownership Information | FinCEN.gov.
Penalties for Non-Compliance
Failure to file on time can result in penalties, including fines of $500 per day, up to a maximum of $10,000.
Can We File on Your Behalf?
No, unfortunately we can not handle this process for you. However, if you are already an existing client, please let us know if you would like assistance with this filing and we would be happy to discuss.
What Next?
If you have not yet fulfilled your reporting requirement, or are unsure of your obligations, please reach out to the team at Holmquist & Gardiner at Holmquist + Gardiner | Real Estate Lawyer in Seattle, Washington.
For more information, you may read our article New CTA Law: Business Owners Must Report Beneficial Ownership or watch our webinar CTA How-To & CPA 2024 Tax Update Webinar.