by Blair Butters | Aug 5, 2024 | Tax Planning
At the beginning of 2024, the U.S. Government started requiring U.S. companies and many small businesses to file Beneficial Ownership Information (BOI). In this blog post, we detail the following BOI information, so you know where you and your company stand: What is Beneficial Ownership Information (BOI)? Who needs to file? When are the filing deadlines? Recent Legal Changes How to file a BOI As always, contact your Accounting and/or Legal counsel for information specific to your company. What is Beneficial Ownership Information (BOI)? Beneficial Ownership Information refers to data that identifies the individuals who ultimately own or control a legal entity (think corporations, LLCs, and other similar entities). The purpose of collecting this information is to prevent and combat money laundering, terrorist financing, and other illegal activities that can be facilitated through anonymity in corporate structures. The Corporate Transparency Act (CTA), enacted as part of the broader Anti-Money Laundering Act of 2020, introduced new reporting requirements aimed at enhancing transparency and curbing illicit financial activities. A key component of the CTA is the Beneficial Ownership Information (BOI) filing requirement, which affects a significant number of small business entities in the United States. Who Needs to File? The CTA requires many companies doing business in the United States, particularly small businesses and entities that are not publicly traded, to report their beneficial ownership information. This includes corporations, limited liability companies (LLCs), and other similar entities formed or registered to do business in the U.S. Entities that qualify for an exemption, such as certain trusts, are not required to file. When are the Filing Deadlines? Companies that were created or...
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