If you currently own twenty-five percent (25%) or more of a business entity you must file a report of personal information (BOI Report). If the entity was formed prior to January 1, 2024, you must file a BOI Report by January 1, 2025. If the entity was formed on or after January 1, 2024, and before January 1, 2025, you must file a BOI Report within ninety (90) days after receiving actual or public notice that its creation or registration is effective. If the entity is formed after January 1, 2025, then you must file a BOI Report within thirty (30) days after receiving actual or public notice that the entity’s creation or registration is effective. You can input the information at:
boiefiling.fincen.gov/fileboir
You must file if you are a “Beneficial Owner” who is defined as one who 1) exercises substantial control over an entity, or 2) owns or controls at least twenty-five percent (25%) of ownership interests in the entity. This legislation, known as the Corporate Transparency Act (CTA), supplements the National Defense Authorization Act which was enacted to stop money laundering and terrorist financing.
Failure to comply with any of the CTA reporting requirements may result in a Five Hundred Dollar ($500.00) per day penalty for each day of the violation up to Ten Thousand Dollars ($10,000.00) per violation and up to two (2) years imprisonment. You are urged to contact the attorney who created your entity and/or your CPA for more information.
Probate: As I have indicated many times in my newsletters, business entities are subject to Probate. You must properly title the business entity into your Living and Family Trust. We prepare documentation for this purpose at the Stephens Law Group. Contact our office if you would desire for us to transfer title of the business interest to the Living or Family Trust.
Whether the entity is in Trust or not, you still must file your informational BOI Report required by the CTA legislation as indicated above in this article.
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Blessings,
Jack E. Stephens, J.D., LL.M