Aug 15/2024

With the introduction of the Corporate Transparency Act, starting in 2024, most U.S. companies are now required to submit beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This new mandatory business filing aims to enhance the government’s efforts to combat money laundering, terrorist financing, and other financial crimes. Here’s what you need to know about FinCEN BOI reporting.

What Is FinCEN BOI Reporting?

FinCEN BOI reporting requires U.S. companies to provide detailed information about their beneficial owners. Beneficial owners are individuals who directly or indirectly exercise substantial control over a company or own 25% or more of the company’s equity interests. This information helps authorities track illicit financial activities and increase transparency in the corporate sector.

Who Is Affected?

The majority of for-profit business entities are required to file this report unless they qualify for an exemption. Entities required to report include:

• Corporations
• Limited Liability Companies (LLCs)
• S-Corps
• Limited Liability Partnerships (LLPs)
• Other entities created by filing a document with any U.S. State

Exemptions: Certain entities are exempt from this requirement, such as publicly traded companies, certain regulated entities, inactive entities, and large operating companies meeting specific criteria. To determine if your company qualifies for an exemption, please check the detailed exemption criteria provided by FinCEN.

Reporting Requirements

Companies required to file must provide the following information for each beneficial owner:

• Full legal name
• Date of birth
• Current residential or business street address
• Identification number (e.g., Social Security Number, Passport Number)

Where to File?

The mandatory BOI reports must be filed online through the FinCEN BOI filing portal. FinCEN has also provided a comprehensive BOI FAQ section to help companies understand the reporting process.

Penalties for Non-Compliance

Non-compliance with the FinCEN BOI reporting requirements can result in severe penalties, including fines of $500 per day, up to a maximum of $10,000, and potential criminal charges. It is crucial for companies to adhere to these requirements to avoid these penalties.

Important Due Dates

1. Entities created before January 1, 2024: Must file by January 1, 2025.
2. Entities created on or after January 1, 2024, and before January 1, 2025: Must file within 90 days of creation.
3. Entities created on or after January 1, 2025: Must file within 30 days of creation.

Updates and Corrections

If there are any changes to the BOI information previously submitted, companies are required to update or correct their BOI reports within 30 days of the change.  This ensures that the information on file with FinCen remains accurate and up-to-date.

Can We Help You File Your FinCEN Report?

Yes, our firm can assist you with this mandatory filing. Our services include:

• Determining if your company is subject to the reporting requirements
• Gathering and verifying the required beneficial ownership information
• Preparing and submitting the BOI report to FinCEN

Next Steps

For more information or to get started with your FinCEN BOI filing, please reach out to us. We are here to ensure your company remains compliant with the new regulations.

Stay compliant and avoid penalties by understanding and fulfilling your FinCEN BOI reporting requirements. Contact us today for assistance!

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August 1, 2023

By Maria Gabriela Sanchez

Due to the winter storms in California last year, the filing tax date was extended to October 16th for California individuals and businesses. Now is the time for small business owners and self-employers to think about organizing their documents and expenses to make the most out of filing their taxes. Here at Aqui Income Tax Service, we understand that you are busy running your business, so we want to make it easy for you to know what kinds of deductions are available to you as small business owners.

Deductions must be related to the operation of the business and help generate profit. For example, if you use a particular software for your business (Microsoft Office, QuickBooks), you can deduct that cost from your income taxes. You might also have office expenses, such as paper supplies, printer ink, etc. If you run a restaurant or autobody shop, the rent for the business property, salaries of your employees, equipment maintenance, and even depreciation of equipment can also be deducted from your taxes.

Self-employers may deduct the cost of office supplies, the cost of internet, and even legal and professional services, such as the ones we provide here at Aqui. If you work from home, you can deduct part of your rent, depending on how much space you use as your office. The cost of advertising and marketing, which all businesses do, can also be deducted from your taxes.
Have any more questions about possible deductions? We are here to answer them! At Aqui Income Tax Service, we are dedicated to working with you on your income tax preparation needs.

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