As 2024 comes to a close, remember the January 1, 2025 deadline to file your Beneficial Ownership Information (BOI) report with FinCEN is also coming due for some businesses. See below for the more highly relevant information we have summarized to help you understand whether you may be affected.
WHAT IT IS
The new beneficial ownership information reporting requirement is part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from ill-gotten gains through shell companies or other opaque ownership structures.
WHO FILES
Reporting companies such as corporations, Limited Liability Companies (including single member LLCs), and other entities registered in the United States, or formed outside of the United States and registered to do business within our borders.
WHO DOESN’T FILE
There are 23 types of entities that are exempt from the BOI reporting requirement. Please see C2 in the FAQs linked here.
WHAT IS INCLUDED
Information about the entity and its beneficial owners, including legal name, address, date of birth, and an identification document (i.e. driver’s license).
WHAT IS A BENEFICIAL OWNER
Any individual who either: (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25 percent of a reporting company’s ownership interests.
WHEN TO FILE
- A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
- A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report.
- Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
- Failure to file timely or inaccurately may result in civil and/or criminal penalties.
WHERE TO FILE
Through the FinCEN’s website, linked here.
CAN I DO IT MYSELF?
Yes, FinCEN expects that most reporting companies will be able to complete this on their own, without the assistance of accountants, lawyers, or others outside of the company.
There is additional information on FinCEN’s website, and in particular the BOI Report FAQs section.
Your SYM team is available for additional questions you may have. Please reach out as you have questions, and we will assist you as we are able. 800-888-7968
Disclosure: The opinions expressed herein are those of SYM Financial Corporation (“SYM”) and are subject to change without notice. This article is for informational purposes only and does not constitute investment, legal or tax advice and should not be used as a substitute for the advice of a professional legal or tax advisor. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. SYM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about SYM including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request.
