We wrote this Blog Post but as of January 7th you don't need to file. Best place to find out what is needed is on the BOI site - https://boiefiling.fincen.gov/
What You Need to Know About BOI
The BOI filing requirement from the Financial Crimes Enforcement Network (FinCEN) asks certain U.S. companies to disclose details about their beneficial owners, which include individuals who directly or indirectly own or control at least 25% of the company. The goal of this rule is to promote transparency in business ownership and prevent illicit financial activity.
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Key Points:
- Who Needs to File? Many U.S.-based corporations, limited liability companies, and similar entities are expected to file, though there are some exemptions for certain regulated or large organizations.
- How to File: FinCEN has set up an online filing system to simplify the process, which can be accessed via their portal.
- Deadline: The official deadline remains December 31,2024, but as noted below, we’re closely watching how potential changes could impact this timeline.
Understanding BOI Filing
You’ve probably received some information or read about BOI. Since the beginning of the year, we’ve been following this requirement closely. So far, only about 7% of the organizations that are required to file have actually done so.
The Debate Among CPAs
Many CPAs are divided on this issue. Some believe the requirement won’t go into effect by year-end, while others are certain it will, as it was an act of Congress. Internally, we’ve filed for three different organizations to get their BOI numbers. We found the process to be very easy but not something we could easily do for someone else. All you need is your company information, tax ID number, names of the owners, and a copy of your driver’s license. It took us between 10 and 30 minutes to fill out the form.
Our Recommendation
Our recommendation to you is to continue to wait before you file for yourself, but don’t wait too long. You don’t want to wait until the last week of December to file when the whole system will probably shut down. The hope is that between now and then, there will be extensions, evaluations, and possibly some lawsuits that will not require you to file at all.
Cost of Filing
We see many accountants and attorneys charging $800 to $850 to do this filing for you. Basically, you’re just providing them with all the information that you might as well provide directly to the government. Therefore, we are not encouraging you to hire someone for this task but don’t hesitate to get your accountant’s advice. We recommend that you file yourself via the online form.
Here at BudgetEase, we offer a range of financial support and bookkeeping services. If you need an excellent teammate in bookkeeping, give us a call, we are here to help!
