Please be reminded of the new federal reporting requirement under the Corporate Transparency Act that may affect your business. We highlighted the key provisions of this new federal law earlier in the year in a Client Alert. See https://www.orba.com/news/what-is-the-corporate-transparency-act/. Here’s a quick summary:
- Affected companies will have to file a Beneficial Ownership Information (BOI) report with a government agency called FinCEN.
- This legal filing will contain information on your business, as well as personal information on its owners and others that have decision-making control over the business.
- Companies in existence prior to January 1, 2024, have until January 1, 2025, to file their initial BOI report. Companies created or registered in 2024 have 90 calendar days to file. Companies created or registered after 2024 have 30 calendar days to file.
- The penalties for non-compliance are steep – up to $591 per day.
If you have not done so already, we recommend that you evaluate your compliance obligations under the Corporate Transparency Act using FinCEN’s guidance at https://www.fincen.gov/boi/small-business-resources and consult with your legal counsel as needed.
For those companies with a reporting requirement, the BOI report is prepared and submitted electronically through a secure filing system available via FinCEN’s BOI E-filing website at https://boiefiling.fincen.gov. You are not required to use an attorney or other professional to prepare and/or submit the BOI report, but you may do so if desired. If you need professional assistance, we would urge you to exercise caution as there are reports of scammers impersonating service providers. For the reason stated in our Client Alert, ORBA is not in a position to assist you with preparing and/or submitting a BOI report.
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