Business owners - federal requirement to file BOI

ATH

ATH

Been here much more than a while
Location
Findlay, Ohio
Did you all know about this?

First I heard of it was when OnPay (the payroll software I use) sent a message about business owners needing to file Beneficial Ownership Information (of course, they'll offer a like to a partner who will file for you so they can get a piece of the pie too...). I do my own taxes...while this isn't tied to taxes, maybe your accountant told you to file??? The software i used did not and they knew when I filed last spring.

Summary: if your business entity is filed with the state Secretary of State (LLC, for example), and there are individuals owning 25% or more, then you have to file (as I understand it - but read up for yourself!!!) Elsewhere I read sole proprietor doesn't need to file...even though I file federal taxes as such, my company is still an LLC registered with the State of Ohio. So I think I still need to complete this.

Anyhow, here's more information:
onpay.com

Beneficial ownership information (BOI) beginner's guide and how to file | OnPay

This beginner's guide has everything you need to know about Beneficial Ownership Information (BOI), reporting requirements, and filing it with FinCEN.
onpay.com onpay.com

or here: https://www.hrblock.com/tax-center/small-business/do-i-need-to-file-a-boi-report/

From the government site: https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf

Where to file: https://boiefiling.fincen.gov/fileboir
 
Yeah I saw this when it first came out and filed then. I don't really know what to think of it other than I think its intrusive and unnecessary. I read that I needed to file as a sole proprietor but im an LLC filing as an S Corp
 
Note...if you haven't filed, you met be able to put it on hold. Court blocked enforcement of the reporting requirements:
www.jdsupra.com

Nationwide Injunction Pauses Enforcement of the Corporate Transparency Act | JD Supra

On December 3, 2024, a federal court issued a nationwide preliminary injunction blocking the enforcement of the Corporate Transparency Act (CTA). This...
www.jdsupra.com www.jdsupra.com

(Obviously, don't take it from me or an article...do your own due diligence!)
 
I received the following from our CPA today and thought to share with you all;

If you have already filed a BOI report for your business, then you can stop reading and pursue more festive December activities!

If you have not filed the BOI report, then we want to provide you with an important update.

On December 3, a federal district court found that the CTA is likely unconstitutional and issued an injunction prohibiting enforcement of the BOI reporting requirement. According to that court, the BOI reporting rule cannot be enforced, and companies need not comply with the BOI’s January 1, 2025 filing deadline, pending a further order of the court. Texas Top Cop Shop, Inc. vs. Garland, No. 4:24-CV-478 (E.D. Texas 12/3/24).

As of today, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has yet to make an announcement concerning this court’s ruling. Accordingly, potential reporting companies (ones that have not previously filed a BOI report) should monitor the status of this injunction and subsequent appeal(s). One potential source of additional information on this matter is the FinCEN website located at http://www.fincen.gov/boi.
 
Merle Nelson said:
Steve Lehto, youtube lawyer, did a piece on this a couple of days ago.
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Be careful about "a couple of days ago" LOL. Just got this from BBB tonight:

"Dec. 3: the U.S. District Court for the Eastern District of Texas issued a preliminary injunction temporarily halting the reporting requirement across the entire U.S, meaning filing was not required, at least for the time being. Here is the link to that decision: Dec. 3 Court Order

Dec. 23: the motions panel of the 5th Circuit Court of Appeals removed that preliminary injunction, meaning the reporting requirement was "back on." I am not providing that link because ...

Dec. 26: the merits panel of the 5th Circuit Court of Appeals changed the ruling from the motions panel 3 days earlier."
 
Last I read its on. I filed when it came out and according to what I read, there's no annual reporting requirement if nothing has changed. So I understand this to mean if you've already filed, fawgedaboudit.
 
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Steve Connally said:
.....there's no annual reporting requirement if nothing has changed. So I understand this to mean if you've already filed, fawgedaboudit.
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Yes...that is correct (I think, except the part about it being back on...unless you read something more up to date than what I read from 12/26). I've just posted the follow-up information for anybody who hasn't filed yet.

As of now, it seems "optional" (ie: you won't have to mess with it later) if you haven't filed, but may be back to mandatory later. Obviously a lot of things will change with a new administration. I have no idea if this will be one of them or not. While I expect a more business friendly approach, this is pretty minimal ask...pretty sure its information the federal government already has on any legitimate business (which, begs, the question "why") or can get via bank records. But it is supposedly a national security thing, which makes me assume the new administration will keep fighting for it to be re-instated through the courts????
 
From the FinCEN website: "ALERT [updated Feb. 19, 2025]: Beneficial ownership reporting requirements are back in effect, with a new deadline of March 21, 2025 for most companies."
 
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levi r said:
Annoying bs, makes me want to get a job. Too many damn forms to be in business.
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I hear you...its always something.

If I wasn't using OnPay, I'm not sure I would have known about this requirement. I haven't seen anything about it elsewhere. I'm sure its there, and I just haven't come across it - but dumb stuff like this makes me wonder what else I missed and how much that's going to cost me!

Maybe when I do my taxes there would be something about it??? One would think they would just make it part of filing and have an April 15th deadline.

I know the state has my email for stuff I file there. Pretty sure the IRS does as well. Would be be too much to email a notice everybody who they expect to file?
 
Merle Nelson said:
I don't know or do my paperwork kind of stuff. But, I was told this applied to LLC's and maybe others but not sole proprietorship. Does that sound right?
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Not necessarily. Did you file any documents with your State Secretary of State to create business? If so, then it sounds like you need to file. See that 3rd link there is a flow chart.
 
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