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Beneficial Ownership Information Reporting

Even though this new Act affects every business current and future, many of the business owners we have talked to have not heard anything about it.

In 2021, Congress passed the Corporate Transparency Act (CTA) on a bipartisan basis. The CTA is part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals associated with the reporting company.

The Corporate Transparency Act went into effect on January 1, 2024, impacting millions of small businesses across the U.S. Knowing the intricacies of this act and its potential impact is essential for small businesses. Otherwise, they may incur criminal or civil penalties for not filing or updating this report.

So what does that mean for you?

Beneficial Ownership Information

Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. This person either has a major influence on the reporting company’s decisions or operations, owns at least 25% of the company’s shares, or has a similar level of control over the company’s equity.

The date you established your business affects which details the company needs to include in the BOI report.

  • A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
  • A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
  • A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

For more information, you can also read this article from the U.S. Chamber of Commerce.

If anyone needs any assistance with completing this report, we are happy to assist for a $50 fee.

Or reach out directly to our document specialist:

admin@assetequalizers.com

417-698-4645

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