Tax and Business Advising Insights

In response to growing concerns about financial transparency and to combat illegal activities, the government has introduced new regulations that impact many small businesses. This new law, part of the Corporate Transparency Act, mandates that businesses report the individuals who ultimately own or control the company, even if their names aren’t on official ownership documents. Who needs to file? Any company registered in the United States that is not publicly traded may need to file beneficial ownership information. This includes corporations, limited liability companies (LLCs), and similar entities. Any individual with a significant control or a substantial ownership stake in the business, typically defined as 25% or more ownership, must be reported. When to file The timing for filing beneficial ownership information depends on your business's status. For newly registered entities, the filing must be completed at the time of registration. Existing companies must comply with filing requirements by January 1, 2025 How to file Businesses are required to submit specific details about each beneficial owner to the Financial Crimes Enforcement Network (FinCEN). This information includes names, birthdates, addresses, and a unique identifying number, such as a Social Security number. Filing is usually done electronically through FinCEN's online portal. Let us handle it for you Navigating the filing requirements for beneficial ownership interest can be complex. As your trusted business advisor, we can manage the entire process for you, ensuring that your filings are accurate and submitted on time. Contact us today to discuss how we can assist with your beneficial ownership filing and keep your business compliant with federal regulations.

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Discover effective tax planning strategies with our guide to Tax Planning. Learn how to minimize your tax liability, maximize savings, and secure your financial future. From Greg Reimann, CPA, in North Liberty, Iowa.