Starting January 1, 2024, Companies operating domestically or foreign Companies registered to do business in the US may be subject, under the Corporate Transparency Act, to identify all individuals who own at least 25% of the Company or have control over the Company directly or indirectly. This is called the Beneficial Ownership Information (BOI) Reporting as part of the government’s efforts to have Companies become more transparent with their ownership structures, prevent money laundering, and stop fraudulent gains and avoidance of tax liabilities through shell companies.
For Companies formed before 2024, the deadline for this information reporting is January 1, 2025. Companies formed in 2024 have 90 days from their formation date to report this information. All other companies formed after 2024 will only have 30 days to report unless a 90-day extension is filed. Companies are also required to timely report any information updates about their owners and officers. Failure to comply with these requirements can result in significant penalties.
Please refer to the video below for a quick information summary regarding this new requirement. We have also attached a link to the FAQs on BOI Reporting.
If you have any questions or need our assistance regarding this new BOI Reporting requirement, please do not hesitate to contact GCK Accounting.
BOI Reporting Informational Video
BOI FAQs
https://www.fincen.gov/boi-faqs
Diwata U. Uy, CPA
Partner, GCK Accounting
