The federal law aims to increase transparency and curb financial crime. That means telling Uncle Sam whether you are a beneficiary of the business.
INDIANAPOLIS — A new federal corporate transparency law went into effect this year.
Justin Hayes, a lawyer at Church Hittle & Antrim, said news of the incident had been making waves on social media since the Financial Crimes Enforcement Network began accepting tips.
“With TikTok and Twitter, clients are coming to us,” Hayes said.
The federal law aims to increase transparency and curb financial crime. That means telling Uncle Sam whether you are a beneficiary of the business.
“A beneficial owner is an individual who owns a 25% ownership interest in a company or who exercises substantial control over the company's decisions,” Hayes said.
Small business owners should also be concerned about this report.
“Anyone who owns rental property through an LLC or has a side business through an LLC should file this report if they have a physical entity, unless a special exemption applies,” Hayes said. There is a need.”
The exemption includes nonprofit organizations and businesses that already report this information, such as banks and insurance companies.
For the one-man band type, Hayes said, this filing takes about 15 minutes. For larger companies, this can be a more complex project.
There is no fee for submission.
Failure to submit willingly can result in a fine of up to $500 per day or two years in prison.
According to the site, the deadlines are:
“Reporting companies established or registered to do business before January 1, 2024 are required to file their first beneficial ownership information report by January 1, 2025.”
Reporting companies established or registered on or after January 1, 2024, but before January 1, 2025, must file their first BOI report within 90 calendar days of receiving notification of company formation or registration. there is.
This 90 calendar day period begins when the corporation receives actual notice that its incorporation or registration is effective or after the Secretary of State or similar agency first publishes its incorporation or registration, whichever occurs earlier. It is calculated from
Reporting companies incorporated or registered after January 1, 2025 must file their first BOI report with FinCEN within 30 calendar days of actual notice or public notice that the company's incorporation or registration is effective. there is. ”
