New Filing Mandatory Requirement for Small Businesses in 2024
In order to prevent illegal activities like money laundering and enhance transparency, small businesses are now required to file the Beneficial Ownership Information (BOI) report in 2024. This requirement, introduced under the Corporate Transparency Act, mandates companies to disclose information about “beneficial owners,” individuals who have significant control or a substantial interest in the company. Most corporations, LLCs, and formally structured businesses must file this form, with exceptions for certain entities like banks and government bodies. Businesses established before January 1, 2024, have until January 1, 2025, to comply, while those formed in 2024 need to file within 90 days of registration. The BOI report is a one-time submission unless there are changes in ownership, requiring details like names, birthdates, and identifying numbers. While this may seem burdensome, timely filing ensures compliance and allows businesses to focus on their operations.
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