New Government Reporting Requirement for LLCs, Partnerships, and S-Corporations: Act Now to Avoid Severe Penalties
New Corporate Transparency Act
As we step into a new era of business transparency and accountability, a significant update has emerged that demands immediate attention from all business entities in the United States. Starting January 1st, a new government mandate requires every business, LLC, partnership, and S-Corporation registered under a Secretary of State to adhere to an annual reporting requirement. This initiative is crucial for keeping government records updated and is not related to tax filings.
What Does This Mean for Your Business?
Annual Reporting Is Mandatory: Each year, every applicable business must complete this report. This is a continuous obligation that requires your attention annually.
Timely Updates on Changes: If there are any changes in your business details, you are obligated to report them within 30 calendar days.
Where to File: This report needs to be filed on the FinCEN website. Note that the website will only be operational from January 1st. Here is the link to their site and this may be where you can report the information starting January 1, 2024. https://www.fincen.gov/boi
Strict Deadlines: You have exactly one year (365 days) from January 1st to submit this report.
Hefty Penalties for Non-Compliance: Failing to comply with this requirement could lead to substantial penalties. Late submissions are subject to a fine of $500 per day, with the potential to accrue up to a staggering $10,000.
What Information Will You Need to Provide?
- The name of your business.
- Your Employer Identification Number (EIN).
- The current address of your business.
- Full details of all owners, including their dates of birth and Social Security numbers.
Why Is This Important? This new requirement is a clear indication of the government’s increased efforts to maintain an updated registry of domestic businesses. It is crucial for legal compliance and to ensure transparency in business operations.
What Should You Do Next? Preparing in advance for this requirement is critical. Start gathering the necessary information and mark your calendar to complete this process well before the deadline. Remember, the cost of non-compliance is not just monetary but can also impact your business’s legal standing.
For further information, assistance, or any queries regarding this new mandate, feel free to reach out to us. Our team is here to guide you through this new compliance process to ensure your business stays on the right side of the law.