Beneficial Ownership Information
Unpacking and Understanding BOI
If you currently own a Limited Liability Company (LLC), you need to be aware of new federal Beneficial Ownership Information (BOI) reporting requirements implemented by the Financial Crimes Enforcement Network (FinCEN). These rules are designed to promote financial transparency and prevent misuse of corporate entities. Here’s what this means for your LLC and how you can comply.
What is BOI Reporting?
BOI reporting requires LLCs and certain other entities to disclose key information about individuals who own or control the business. This data helps the government fight against illicit financial activities like fraud and money laundering.
Who Needs to Report?
Most LLCs created or registered in the United States must submit BOI reports. However, some entities—such as publicly traded companies or those regulated by government agencies—are exempt. You can view the full list of exemptions here.
What Information Must Be Reported?
The BOI report for your LLC must include:
- Beneficial Owners: Individuals with at least 25% ownership or who exercise substantial control over the LLC.
- Company Applicants: Individuals who filed the registration paperwork for your LLC.
Each person listed must provide:
- Full name
- Date of birth
- Residential address
- Identification number (e.g., driver’s license or passport)
- A copy of the ID used
For detailed reporting requirements, visit FinCEN’s BOI Reporting Guide.
When Do You Need to File?
- Existing LLCs: Reports are due by January 1, 2025.
- New LLCs (formed on or after January 1, 2024): Reports must be submitted within 30 days of formation or registration.
Missing the deadline can lead to significant penalties, so don’t wait!
How to File Your BOI Report
Reports must be submitted through FinCEN’s secure online filing system. Step-by-step filing instructions are available here.
What Are the Penalties for Non-Compliance?
Non-compliance can result in civil penalties of up to $500 per day or criminal fines and imprisonment for willful violations. Staying proactive can help you avoid these consequences.
We’re Here to Help!
If you have questions or need assistance with your BOI report, don’t hesitate to reach out. You can also find more information on FinCEN’s BOI webpage.
We’re committed to helping you navigate these changes and stay compliant.
Take Action Today!
Ensure your LLC meets BOI reporting requirements before the deadline. For more details, check FinCEN’s official resources:
How to Properly Report the Closure of an LLC to State and Federal Authorities
Closing your LLC? Follow this simple guide to inform state and federal authorities of your business closure. Learn the required steps, including filing Articles of Dissolution and final tax returns, to ensure a compliant and hassle-free process.
How to Properly Report the Closure of an LLC to State and Federal Authorities
If you’ve decided to close your Limited Liability Company (LLC), it’s important to follow the proper steps to formally dissolve the business. Informing the state and federal authorities of your LLC’s closure ensures you avoid future tax liabilities and legal obligations. Below are the necessary steps to report the closure of your LLC.
Required Steps to Notify State Authorities
1. File Articles of Dissolution
- Why It’s Needed: Filing Articles of Dissolution with your Secretary of State officially terminates your LLC’s existence in the state where it was formed.
- How to File: Check your state’s specific requirements, as the process and forms may vary. Some states may allow online submission, while others require paper forms.
- Fee: Be prepared to pay a filing fee, which varies by state.
- Tip: If your LLC is registered in multiple states, you’ll need to file dissolution documents in each jurisdiction.
Cancel Local Business Licenses and Permits
- Contact your city or county offices to cancel any business licenses, permits, or registrations.
- This step ensures you won’t incur fees for permits you’re no longer using.
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