Despite the many efforts to delay or repeal the Financial Crimes Enforcement Network’s (FinCEN) new rule on Beneficial Ownership Information (BOI), the rule is still in effect. This rule requires an estimated 32 million corporations, LLCs, or similar entities with 20 or fewer employees and $5 million or less in gross receipts or sales to report their beneficial ownership information to FinCEN. (Details on just what a beneficial owner is and where and how to file can be found here.)
Reporting Timeline
Businesses will have until January 1, 2025 to file if the business was formed before January 1, 2024.
- Any business created during 2024 will have 90 days to report
- Businesses formed after January 1, 2025, will have 30 days to report
Businesses that have a change in BOI will have 30 days to file updated reports. Additionally, businesses that must correct errors after the initial filing, are required to file a corrected report within the 30 days of the date it knew, or should have known, that the information was inaccurate.
Failure to report could result in criminal penalties of up to 2 years in prison and civil penalties of $500 per day, up to $10,000. While it is possible this rule could be delayed, we believe the risk of waiting and hoping is too great. The Lander Chamber of Commerce urges you to contact your accountant and/or attorney with your questions.
