New reporting requirement

Hi! 

Just when you thought they gave us enough to report, there is a new law that was just passed. 

If you have any type of business entity, you must now register with FinCen. This is to prevent unknown ownership of a US company by non-US persons or entities. 

As of Jan 1st, 2024: 

• Any new company that is formed after Jan 1st, 2024 must register with FinCen.
• Any prior company formed prior to Jan 1st of 2024 must register with FinCen as soon as possible this year. 
• Any time you have a change in ownership structure, you must report within 30 days. 

These reports are known as BOI reports and are mandatory even for entities that are showing a loss, are a shell entity, or are completely dormant. 

The types of entities affected are LLCs, S-corps, C-corps, and other similar entities. Certain types of entities such as trusts and nonprofit organizations might be exempt depending on specific criteria.

Failure to file these can result in criminal or civil penalties. I realize this sounds wild, but here we are. The only good news is that it seems we only have to file it once unless you have ownership changes. 

If you need assistance with this or have any questions, please reply back to me directly and I will jump in. Happy to help.

— 

George Dimov CPA

www.dimovtax.com

(833) 829-1120 toll free