HEADS UP. THIS IS REALLY IMPORTANT
MORE INFORMATION ABOUT BENEFICIAL OWNERS INFORMATION REPORTING
WHAT YOU NEED TO KNOW
Starting January 1, 2024, a new mandatory reporting (the BOI Beneficial Ownership Information Report) is required for small business LLC’s, S Corporations, Corporations, and partnerships formed as LLC’s.
This includes almost all restaurants and bars, real estate companies and even a single building, rental property or house titled as an LLC.
The reason we urge you to take this very seriously is because the law establishes a $500 per day fine up to $10,000 and up to two years in prison for failure to file a complete and accurate initial or updated report.
In addition, any changes to the required information (see below) must be reported within 30 days of the change.
The information required to be reported is:
- your entity’s full legal name,
- any and all DBA’s used by the entity,
- current location address,
- federal ID number
- Along with all “beneficial owners” names,
- dates of birth,
- street addresses,
- social security numbers and
- an image of your driver’s license or passport
A “beneficial owner” may include a senior officer or manager who is not an owner if they have the authority to hire or fire employees or make important decisions or otherwise have substantial control over the reporting company.
Companies with more than 20 employees AND more that $5 million in gross sales are exempt from reporting.
If your company existed before January 1, 2024, you have until January 1, 2025 to file your initial report. Starting in 2025, new companies will have only 30 days from creation to file their initial report.
Any changes to the above information must be reported on an updated report within 30 days of the change or face penalties. So if a beneficial owner moves or gets a new drivers license ALL of your BOI reports MUST be updated within 30 days!
It is possible to go on-line and file the reports yourself but you must be very careful to submit the proper information and to go to the correct official website because you could be giving your critical private information to a phony website or to a temporary website (here today and gone tomorrow) offering the filing service for high fees.
Kallas can file these forms for you at a reasonable fee. We have your safe-guarded information already and have a good working knowledge of your entity and the basic information that will be needed.
Later this year, Kallas will be contacting you regarding your filing requirements so stay tuned.
