RICHMOND, Va. – Some small business owners now have an extra two weeks to file Beneficial Ownership Information Report (BOI). with the government, otherwise you risk a hefty fine.
“When you form an LLC, no one knows who the members of the LLC are,” says Jim Wilson, president of the Wilson Law Group in Richmond.
The purpose of the Corporate Transparency Act is to find out who those members are. The rule applies to approximately 32.6 million businesses, including certain corporations, limited liability companies (LLCs) and other small businesses.
Affected companies typically file with the State Corporation Commission or the Secretary of State when they first incorporate their business.
The requirement was created to prosecute people who commit financial crimes through LLCs.
“People are committing financial crimes,” Wilson said. “Financial crimes using these entities that no one can identify a person with. They just want to know who the people in your company are, what their addresses, social security numbers and dates of birth are.”
The initial filing deadline was December 31, but last week the U.S. Treasury Department pushed back that deadline January 13, 2025, as a result of recent federal court rulings.
Small businesses and owners who don’t follow the rules could face fines of up to $591 per day. They could also face a $10,000 fine if they submit fraudulent information.
The BOI report must be submitted to theThe Ministry of Finance’s Financial Crimes Enforcement Network by January 13.
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