BOI Report Filing Deadline Is December 31
By: Phil Rarick, Miami Trust Attorney
Note: This Alert is for any owner of a LLC, corporation, limited partnership, or professional association. It is in follow up to our past notices about the requirements of the Beneficial Ownership Information (BOI) report under the new Corporate Transparency Act (CTA) and the upcoming deadlines.
You should wait no longer. The bill that would extend the BOI Reporting requirement has not gained enough traction, and it is doubtful if it will pass before the end of the year.
The BOI report deadline for existing entities, such as LLC’s, corporations, and partnerships, to file is December 31, 2024. Civil penalties for failure to file can be $500 per violation per day for each day the violation continues or is not remedied, up to $10,000.
The deadline for new entities formed after January 1, 2024 is 90 days from the effective date.
–
What Should You Do:
Option #1: You can file yourself by going to the Financial Crimes Enforcement Network (FinCEN) website: https://boiefiling.fincen.gov/fileboir.
Option #2: Secure Assistance of Attorney
The determination of who must report typically requires a legal analysis of the “beneficial owner”. A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests.
Note: For LLC’s, a legal analysis of the Operating Agreement and last tax return needs to be performed. If an entity is owned by a Trust, then the Trust must be analyzed to determine what person(s) needs to report.
–
IMPORTANT: if you have received emails from 3rd party companies offering to file the BOI report for you, it is likely spam. These companies offer no real value and will ask you the same questions that you can complete yourself on the FinCen website for no fee.
–
For more information on the background of the Corporate Transparency Act check out our blog post at: BOI Reporting: The Corporate Transparency Act May Impact You