Starting January 1, 2024, almost every small business is required to file a Beneficial Ownership Information (BOI) Report. This new reporting rule is a result of the Corporate Transparency Act, enacted by Congress in 2021

In accordance with regulatory requirements and transparency initiatives, Premium Tax Accounting is committed to collecting and reporting beneficial ownership information to ensure compliance and mitigate financial risks.

What is Beneficial Ownership?

Beneficial ownership refers to the natural persons who ultimately own or control a legal entity, either directly or indirectly. This includes individuals who:

  • Have a significant ownership interest (e.g., owning more than 25% of the entity's shares)

    OR

  • exert substantial control over the entity's operations and decision-making processes.

Identifying beneficial owners helps uncover the true ownership and control structure of a legal entity, providing valuable insights into its ownership interests and potential risks.

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Reporting Deadlines

  • Companies existing before January 1, 2024: The deadline is January 1, 2025.
  • Companies created on or after January 1, 2024, the BOI report must be submitted within the first 90 days.
BOI

What are the Penalties For Not Filing?

Failure to comply with this new law can result in civil and criminal penalties. Penalties can include fines of up to $500 per day that the violation continues, criminal penalties of up to two years of imprisonment, and a fine of up to $10,000.

In accordance with regulatory requirements and transparency initiatives, Premium Tax Accounting is committed to collecting and reporting beneficial ownership information to ensure compliance and mitigate financial risks.

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Email: info@premiumtaxaccounting.com