Have a Corp or LLC? Please read!

If you own or control 25% or more of a Corporation or LLC, or certain types of trusts, you are required to file a Beneficial Ownership Information Report (BOI).  The penalty for not filing is $500 PER DAY.   

The good news:  if you formed a corporation or LLC in 2023, you have until December 31st to register with FinCEN.  Any new Corporation or LLC formed in 2024, you’re given 90 days to file.  

The Corporate Transparency Act is a new law designed to prevent nefarious actors from running illegal businesses in the US.  Some argue that this is an overreach of our government, but nonetheless, this is law.  

Over the past few months, I’ve spoken with many people that have LLCs established, but haven’t conducted any business.  These people think, “I formed the LLC, but haven’t even opened a bank account.  I shouldn’t have to file anything.”  WRONG.  

There are also certain types of trusts that are required to file.  If you have a Revocable Living Trust or Real Estate Privacy Trust (Land Trust), there are no filing requirements.  But I do have a number of people that have formed trusts and obtained EIN number for the trust – these people will probably have to report to FinCEN.  If in doubt, call your CPA or legal professional.  Better safe that sorry on this one…

As you’re discussing your business or investment activity with friends and family members, be sure to ask if they’ve filed the BOI.  There’s no cost to file, and it only takes a few minutes.  I’ve been shocked at the number of people that have no idea about this new law. 

Ignorance is not a defense and FinCEN is not messing around.   There was a court case in Alabama that exempted a small number of people from having to file the BOI.  Some people are waiting to see if there are any other lawsuits that may exempt you, as the owner, from having to file the report.   However, with a $500 per day penalty, per shareholder, you may want to go ahead and file.  

I filed the report immediately.  However, I forgot to file this report for my wife.   Since she’s a 50% owner of all my businesses, I have to file this report for her as well.  (I’m glad I was writing this article, I would have completely forgot!!!)

If you need help filing this report, please do reach out to NCH.  We can file the BOI report for you for a small fee, or you can file yourself.

NCH is the only entity formation in the country with over 10,000 5 Star Reviews on Trust Pilot.  In addition to forming Corporations and LLC, we have in-house, a full legal department, we have amazing CPA’s for tax and accounting support, we help building business credit, business plans, estate planning, and self directed IRA’s and SoloK’s.   Please do reach out if you have any questions about your current structure or need help with businesses or investments.

With NCH, the state’s top business formation service, you can register your LLC in Nevada quickly and easily. Our specialists will help you choose the right entity for your company and understand why an LLC in Nevada is your best option. We’ll assist you with all necessary Nevada LLC forms, including the vital Articles of Organization, and help you comply with state regulations. In addition, we offer expert assistance with tax compliance, credit building, and payroll management. Schedule a private consultation to explore effective solutions to minimize tax liabilities and protect your wealth. Start unleashing your LLC’s full potential today with NCH. Schedule a consultation with Adam Kintigh today!

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.