|
A new federal reporting requirement for businesses has gone into effect! As of January 1, 2024, most small businesses (i.e. businesses with a revenue under $5 million per year and less than 20 employees) must report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a division of the United States Department of the Treasury. Reporting companies created before January 1, 2024 have one (1) calendar year to file their BOI reports, meaning they must be filed by January 1, 2025. Reporting companies created on or after January 1, 2024 will have ninety (90) days from formation to file. These BOI reports are not annual filings, however updates or corrections to reports must be submitted within thirty (30) days of becoming aware of the change. Failing to report or make updates to the reported data can result in a civil penalty of up to $500 for each day that the violation continues, or criminal penalties, including imprisonment for up to two years and/or a fine of up to $10,000. These BOI reports are free to file and contain information about the reporting companies, their beneficial owners, and their company applicants. FinCEN will maintain the information it collects in a confidential, secure, and nonpublic database.
Our office is prepared to assist clients with determining if their business qualifies as a reporting company, and if it does, we are also prepared to assist clients with preparing and filing their BOI reports. If you have any questions about these reporting obligations, please do not hesitate to contact our office at (617) 409-7409 or via email at mparent@phiferpinkham.com.
| 
