If you own a US LLC or corporation, there’s a new Federal requirement that you need to be aware of. By December 31, 2024, you must file an initial report with the Financial Crimes Enforcement Network (FINCEN) detailing Beneficial Ownership Information (BOI). This requirement is aimed at preventing money laundering (Because of course it is - It wouldn't just be the latest Good Idea Fairy fail) and applies to nearly all of our clients with U.S. entities.
Fun fact: the US Government expects over 32 million initial reports to be filed in 2024 alone, and take about 120 million man-hours to complete, file, and process these reports. Again, because reasons.
What’s Required
The new rules require you to file a BOI report with FINCEN and update it whenever certain changes occur. The penalties for not filing on time are steep:
- Fines up to $591 per day, capped at $10,000
- Potential prison time of up to two years
What to Do
Because of the gongshow penalties associated with these filings, we are approaching things quite formally. For each LLC or corporation you own, you’ll need to take one of the following steps:
- Hire Us to Handle It: Sign and date an engagement letter with us to take care of the BOI filing. We’ll ensure it’s done correctly and on time.
- Do It Yourself: Sign a confirmation letter that you are handling the reporting on your own.
Next Steps
If you haven’t heard from us yet, there’s no immediate action required on your part. We’ll be in touch when it’s time to gather the details we need from you.
If you choose to work with us on this, we’ll also help ensure that any other related U.S. tax obligations are up to date, streamlining your cross-border compliance. We’re here to make this as painless as possible, but we need your cooperation to move quickly. When we reach out to you, please respond promptly with the necessary information.