Austin Lillis at ADP
As we start the new year and you are evaluating your vendors, I wanted to introduce you to my local partner at ADP, Austin Lillis. We have been working together for the last year and he has helped multiple clients of mine. While he does help with payroll, ADP can also help streamline Workers Compensation, Retirement, Benefits, Timekeeping, etc. If you would like to hear more about how ADP can help save your business time and $$ with these services, I can facilitate an introduction! Thank you.
Beneficial Ownership Information (BOI) Reporting is a new rule issued by the Financial Crimes Enforcement Network (FinCEN) requiring business owners to provide personal identifying information.
BOI Reporting requirements stem from the Corporate Transparency Act (CTA), part of the Anti-Money Laundering Act of 2020. While this Legislation has been around for a few years, FinCEN, a bureau within the U.S Treasury Department, recently issued a final rule that takes effect on January 1, 2024.
The Beneficial Ownership rule applies to two types of businesses:
- Domestic reporting companies – These are corporations, limited liability companies (LLCs), and entities created by filing with a secretary of state of similar office under the law of a state or Indian tribe.
- Foreign reporting companies – These are corporations, LLCs, and other entities formed under the law of a foreign country’s law that are registered to do business in any U.S. state or Tribal jurisdiction.
A Beneficial Owner (BO):
- Directly or indirectly exercises “substantial control” over a company or
- Directly or indirectly owns or controls 25% or more of a company’s ownership interests.
A person can be a beneficial owner when they have significant influence over the activities and decisions of the entity, even if they don’t own a substantial portion of the company’s stock or hold a formal title such as, but not limited to, CEO or President. A Beneficial Owner could be found beyond the normal scope of ownership, potentially extending to certain family members.
Companies created or registered to do business before January 1, 2024, will have until January 1, 2025, to file their initial BOI report. Companies created or registered after January 1, 2024, have 90 days to file a BOI report. That 90-day window starts when the company receives notice from the secretary of state or another office that its creation or registration is effective.
The following items need to be included in the BOI report:
- The business’s legal name, trade name, or “doing business as” (DBA) name.
- The current street address of its principal place of business in the U.S. – No PO Box
- Its jurisdiction of formation or registration.
- Its taxpayer identification number.
- The name, date of birth, and address of all company beneficial owners.
- *A unique identifying number from an acceptable identification document, such as a non-expired driver’s license issued by a U.S. state or passport.
*The company must submit the image of the identification document to report your company’s beneficial ownership information to FinCEN electronically through a secure filing system at https://boiefiling.fincen.gov at no charge.
Businesses not complying with BOI reporting requirements can face stiff penalties. Any company that fails to file a required BOI report or amendment by its filing deadline is subject to a fine of $500 per day, up to a maximum of $10,000.
This is a significant change that can affect many businesses. Take the time to educate yourself about your business’s obligations and filing requirements under the CTA and at www.fincen.gov
We are here to assist you with any questions or concerns. If you require our help filing your BOI Report electronically, please do not hesitate to contact our office. Kindly provide us with a copy of each beneficial owner’s photo identification and the information mentioned above.