New Beneficial Ownership Information (BOI) Reporting Rules on 2024: What Business Owners Need to Know

Hey there, fellow business owners! There are some important changes on the horizon that you need to be aware of. Starting January 1, 2024, new rules will require millions of companies in the U.S. and foreign businesses registered in the U.S. to report who really owns or controls them. This process is called “Beneficial Ownership Information” (BOI) reporting, and it’s something you’ll need to pay close attention to.

Why the change, you ask?

Well, the Financial Crimes Enforcement Network (FinCEN) created these rules to help fight financial crimes and money laundering, which can happen when people hide behind fake or secretive companies. By making businesses more transparent, it will be harder for bad actors to take advantage of the system.

Now, let’s break down what this means for you and your business:

1. In 2024, about 33 million companies will have to file these BOI reports for the first time. After that, about 5 million new companies will need to file every year.
2. Corporations, LLCs, and other entities created under U.S. state governments or foreign companies registered in the U.S. must file BOI reports. There are a few exceptions, but most businesses will need to comply.
3. The BOI reports will need to include specific details about the company and the people who own or control it (the “beneficial owners”).
4. A person is considered a “beneficial owner” if they have a lot of control over a company or own/control at least 25% of it.
5. Starting January 1, 2024, when someone creates a new company or registers a foreign company in the U.S., they also have to report the people involved in that process (the “company applicants”).

Know your BOI Deadlines

As for deadlines, companies that already exist or are registered before January 1, 2024, have to file their first BOI report by January 1, 2025. For companies created or registered after that date, they need to file their BOI report within 30 days.

In summary, these new rules might feel like extra paperwork, but they’re a crucial step towards making the business world more transparent and secure. By keeping up with these requirements and deadlines, you’ll help maintain a level playing field and contribute to the fight against financial crime. So, let’s get ready for these changes together and ensure that our businesses continue to thrive in a more secure and accountable environment.

We know that navigating these new reporting requirements might feel overwhelming, but don’t worry – we’ve got your back! Our team at SAS Tax and Business is here to help you every step of the way. With our expertise and personalized support, we’ll make sure you understand and meet all the BOI reporting requirements, so you can stay focused on growing your business.

Don’t let these new rules catch you off guard. Contact SAS Tax and Business today, and let us take the stress out of BOI reporting for you. Whether you’re an existing company or starting a new one, we’ll make sure you’re fully prepared for these new regulations. Together, we can ensure your business continues to thrive in a more transparent and accountable environment.

???? Call us now at (832) 263-7308 or send us an email to [email protected] to schedule a free consultation. Our friendly and knowledgeable team is ready to answer all your questions and help you stay ahead of the game. Remember, the deadline for initial BOI reports is January 1, 2025 – so don’t delay, reach out to SAS Tax and Business today!