Dear Client,

Starting January 1, 2024, FinCEN launched an online portal for filing the new Beneficial Ownership Information (BOI) report, as mandated by the Corporate Transparency Act (CTA) passed in 2021. This report is required for certain corporations, limited liability companies, and similar business entities.

Exemptions to Reporting:

The following entities are exempt from the reporting requirement:

• Tax-exempt organizations, and
• Entities that meet all of these conditions:

1. Employ more than 20 full-time workers,
2. Have an operational presence in the U.S., and
3. Filed a U.S. Federal Income Tax or Information return for the previous year showing over $5 million in gross sales.

Entities that do not meet these criteria must submit a report to FinCEN with basic details about the business (such as name, address, and EIN) and its owners or individuals with control over the entity (including name, address, birth date, and ID number). This is a one-time filing, which only needs to be updated if there are changes in ownership.

There are 23 additional exemptions to the BOI Report. Read this article for more information: https://www.wolterskluwer.com/en/expert-insights/the-23-exemptions-from-the-corporate-transparency-act

Filing Deadlines:

The deadline to submit the BOI report depends on when the entity was registered:

• Before January 1, 2024: The filing deadline is January 1, 2025.
• After January 1, 2024: The deadline is 90 days from the date of registration.
• After January 1, 2025: The deadline is 30 days from the date of registration.

If there is a change in ownership that requires the report to be re-filed, the update must be made within 30 days of the change.

Penalties for Late Filing:

Failure to meet the deadline for submission will result in daily penalties, starting at $591 per day. Timely filing is crucial to avoid these fines.

Dissolving Entities:

If an entity is being closed or has already been closed, ensure that it is fully dissolved to eliminate the obligation to file the BOI report. Inactive entities that existed before January 1, 2020, are exempt from the reporting requirement.

Conclusion:

You can file yourself on FinCEN’s website, your attorney can file for you, or you can hire us to file your report for $490. If you have questions or would like more information, call us at (402) 932-8815.

Sincerely,
W. E. Stevens, P.C.