Avoid Penalties: The New Law Business Owners Must Know (2024)

💼Business owners are facing new regulations that require them to file an annual report disclosing company and owner information.

📋The new law, known as Boi reporting requirements, applies to LLCs and corporations.

🚫💰Non-compliance with the law can result in penalties, including fines of up to $10,000 and jail time.

📅The deadline for filing the initial report depends on the creation date of the entity, ranging from January 1, 2025, to within 90 days of registration.

🔒📝🏛️The required information for the report includes entity name, address, tax ID, and beneficial owner details.

Who is required to file the annual report?

—LLCs and corporations are required to file the annual report.

Are unincorporated businesses, such as sole proprietorships, exempt from this requirement?

—Yes, unincorporated businesses are exempt from filing the annual report.

Who is considered a beneficial owner?

—Any owner who owns at least 25% of the entity or exercises substantial control over the company.

What information must be reported in the annual report?

—The annual report requires the disclosure of entity name, address, tax ID, and beneficial owner details.

What are the penalties for non-compliance?

—Non-compliance can result in penalties, including fines of up to $10,000 and jail time.

00:00Starting from January 1st, 2024, business owners must file an annual report disclosing information about their company and owners to the government. Non-compliance can result in penalties, including fines and jail time.

03:39LLCs and corporations are required to file the annual report, while unincorporated businesses are exempt.

03:59Beneficial owners, who own at least 25% of the entity or exercise substantial control, must be reported.

05:02The required information in the annual report includes entity name, address, tax ID, and beneficial owner details.

05:45The deadline for filing the initial report depends on the creation date of the entity, ranging from January 1, 2025, to within 90 days of registration.