If you have an established company that registered with a Secretary of State office, including LLCs or are planning on starting a new company in 2024 or beyond, read this carefully. The Corporate Transparency Act (CTA) may require you to file Beneficial Ownership Information (BOI) as required by THE Financial Crimes Enforcement Network (FinCEN) beginning in 2024.

What Is FinCEN BOI Reporting?

FinCEN BOI reporting is a NEW mandatory business filing requiring most U.S. companies to submit their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) in 2024. If not filed, you could be subject to fines of up to $10,000 and criminal charges.

Who Is Required to Comply?

Entities required to comply with the CTA (“Reporting Companies”) include corporations, limited liability companies (LLCs), and other types of companies that are created by a filing with a Secretary of State (“SOS”) or equivalent official. Large corporations with > $5 million in net gross receipts after returns and allowances, who have a physical location in the US and have > 20 full time employees in the US are exempt, however, if the company loses this exemption, they must start filing.

What are the Due Dates for the Initial BOI reporting?

1) Entities created before 1/1/24, will have until 1/1/25 to submit the report
2) Entities created on or after 1/1/24 and before 1/1/25, will have 90 days from creation or registration
3) Entities created on or after 1/1/25, will have 30 days from creation or registration

When and how to file:

Initial and updated BOI reports in the future is required to be filed electronically. Updated BOI reports will include updates for things such as a change in ownership, address, expired driver’s license, etc.

Can RMMC file your FinCEN report?

Yes, our firm can file your report. CPAs were initially unsure if this was practicing law, but that has recently been resolved, so we have added this as a service for you. Contact us for more information.