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New Business in 2024? Don’t Get Buried in FinCEN Filings! (But Know Your Exemptions)

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New Business in 2024? Don’t Get Buried in FinCEN Filings! (But Know Your Exemptions)

Congratulations! You’ve launched your entrepreneurial dream in 2024. But amidst the celebration, remember the ever-evolving legal landscape. New regulations like the Corporate Transparency Act (CTA) and Beneficial Ownership Identification Rule (BOI) could mean additional paperwork. Drenen Financial, your trusted accounting partner, navigates these complexities for you, ensuring your new business stays compliant and avoids costly penalties.

Here’s what new businesses like yours need to know:

What are the CTA and BOI?

  • CTA: Creates a national database of beneficial owners – individuals with significant control over an entity. Think of it as a public registry for company ownership.
  • BOI: Requires companies formed after January 1, 2024 to report their beneficial owners and related information to FinCEN, the U.S. Treasury Department’s anti-money laundering and financial crimes unit. Consider it providing FinCEN with details about who ultimately controls your business.

Do I Need to File a BOI Report?

If you formed your business in 2024, you generally need to file a BOI report. However, breathe easy – exemptions exist! Consulting with Drenen Financial’s expert accountants is crucial to ensure you’re not filing unnecessarily.

Who’s Exempt from BOI Filing?

The following are some common exemptions:

  • Publicly traded companies: If your company is publicly traded on a major U.S. stock exchange, you’re exempt from BOI filing.
  • Certain financial institutions: Banks, credit unions, insurance companies, and investment funds are generally exempt.
  • Government entities: Federal, state, local, and tribal governments are exempt.
  • Non-profit organizations: Certain types of non-profits, like 501(c)(3) organizations, are exempt.

Not sure if your business qualifies for an exemption? Don’t worry! Drenen Financial’s experienced accountants will analyze your specific situation and guide you through the process.

What Information Do I Need to Report (if not exempt)?

BOI reports require details about your business and its beneficial owners, including:

  • Name, date of birth, address, and Social Security number (optional)
  • Citizenship and passport information (non-U.S. citizens)
  • Relationship to the business (e.g., owner, manager)

When Do I Need to File (if not exempt)?

  • Companies formed in 2024: Within 90 days of receiving notice of formation.
  • Companies formed after 2024: Within 30 days of formation.

The Penalties of Not Filing (if not exempt)

Failing to file a BOI report or filing an inaccurate report can result in significant penalties, including:

  • Civil penalties: Up to $10,000 per day, per violation.
  • Criminal penalties: Fines of up to $500,000 and imprisonment for up to five years.

Drenen Financial: Your Compliance Ally

Navigating FinCEN regulations can be daunting. Drenen Financial’s experienced accountants will:

  • Evaluate your specific situation to determine if you need to file.
  • Gather and organize necessary information to ensure accurate reporting.
  • Complete and submit BOI reports electronically on your behalf.
  • Keep you informed about any future changes or updates to FinCEN regulations.

Don’t let compliance paperwork distract you from building your business. Partner with Drenen Financial and focus on what you do best – achieving your entrepreneurial dreams.

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