Let’s be honest—most of us didn’t start a business for the paperwork. But small business owners know that compliance comes with the territory, and the new Corporate Transparency Act (CTA) introduces a new form: the Beneficial Ownership Information (BOI) report.
BOI reporting is now a federal requirement, introduced to promote transparency and prevent financial crimes. Under the CTA, many businesses must disclose the beneficial owners—those holding 25% or more ownership—of their companies. The goal is to identify who’s truly in charge, deterring tax evasion and illegal dealings.
Does Your Business Need to File?
If your business is an LLC, corporation, or similar entity registered at the state level, you likely need to file. Only a few large entities are exempt, so it’s best to assume most small businesses need to comply. Deadlines are straightforward: companies formed before January 1, 2024, should file by January 1, 2025. New businesses have a 90-day filing window from their formation date.
In your BOI report, you’ll need to include:
- Your business’s full legal name and any trade names.
- Beneficial owners’ details: names, dates of birth, addresses, and identification numbers (like passport or driver’s license).
For disregarded entities, like single-member LLCs, using the taxpayer ID number of the owner can simplify the process.
BOI filing isn’t just a one-time task; it requires updates. You must file an updated report within 30 days of changes in beneficial ownership, name, or identification information. However, there’s no need for annual filings unless there are ownership updates.
Penalties are strict, with fines as high as $591 per day or more for willful non-compliance.
G&S Accountancy: Making BOI Compliance Stress-Free
If you’re feeling overwhelmed by BOI requirements, G&S Accountancy can help. We offer services to:
- Determine if you need to file.
- Assist with report completion.
- Handle ongoing updates when there are changes in ownership.
With our support, you can focus on running your business confidently, knowing compliance is under control.
Let G&S Accountancy Help You Stay Compliant
The Corporate Transparency Act introduces new filing requirements, but G&S Accountancy is here to simplify compliance. Connect with us today to ensure your BOI reporting is accurate, timely, and penalty-free.
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