All right. We've got the Beneficial Ownership Information Reporting Form.
It's a very important form that starts in 2024.
If you have a corporation or an LLC, it likely applies to you,
so you'll want to listen up on this. And you'll probably need to file
another form. I know another form that you,
you gotta have, you have to file for your business or your investments if
you are owning the business or investments for a corporation or an LLC.
I'm gonna cover the Who, What, What, What. Where, when, and why of this.
And there is some, there is some misinformation. Well,
maybe it's, it's, there's like some information out there on social media where it
just feels like people are trying to scare you into doing something.
This is not one of those things. This is not a- huge deal.
It may be a huge deal if you don't do it, but it's just
a very simple form. I'm going to jump into the details of what it
is and why we're doing it. So first off, who needs to file one
of these forms? So it's this. An official ownership information form.
The people that need to file it. It's going to be owners of corporations
and owners of LLCs.
So if you have one of those, we'll, we'll talk about that.
There are some exemptions. It's not going to be every single.
Corporation LLC, but I would start with just first assume that you need to
file. And then if you qualify for one of those,
the exemptions, great. Like the exemptions are,
it's not going to apply to a lot.
Most people will need to file one of these forms.
So that's why I say assume that you need to file unless you really
do qualify for one of the exemptions. I'll cover those at the end.
There's 23 of them and I'll just go through those.
But that's the first thing is just who needs to file United States companies
if your corporation or LLC. So the second one,
like what is this thing? So the second section is just what is the
BOI? So the BOI, the beneficial owner,
ownership information form is a government form and
it's the government's way. It's part of an anti-money laundering and a
corporate transparency act that passed in the last couple of years.
Where the government wants more information on who owns different companies and
there's not some nefarious thing behind it.
At least in my opinion, it's really for them to prevent and to kind
of track these foreign And of course, corporations and foreign individuals from using
United States companies to own things or transfer money or launder funds.
It's not a huge deal in my opinion and like when you register your
corporation and your business, you and your EIN,
you're giving this information up when you first register these companies anyways,
but there's just going to be an ongoing reporting requirement for it.
I'll give you some of the details on how you file that.
But that's what it is.
It's just a government requirement where each and every year they want you to
file this form, this BOI form, where you give them the name
of the owners, the ownership percentages,
the address of the owners,
birthdays and social security numbers. And it is a lot.
Like it's information you give when you're forming your companies,
but it's personal. It's personal information of who owns these companies.
And it's going directly to the government. It's,
it's through this, this FinCEN.
It's a financial, it's a, like a foreign financial reporting
center that the government has. And they're,
they're going to have an online filing system for it.
And kind of typical government fashion, they don't have anything set up yet.
But next year, we're in 2023 now,
in 2024, it's going to be a year. It could be due by the
end of 2024. And so you want to at least be aware of it,
understand that there's going to be an online filing system in the actual form.
We don't even have the actual form yet. This is, we're in November,
2023 now. Have the actual forms.
We just know the law that's been passed and we know some of the
information that they're going to require. But that's what it is.
It's going to be a basic form, just an information form. I'm not asking
for income and expenses. It's not a tax return.
It's different from the IRS. It's not something that you normally send to the
IRS or like your state for income taxes.
It's something different. Just the ownership information.
Okay, so the where and when to report.
So we've talked about the who, right?
Who applies. It's corporations and LLCs.
What it is. I've explained that a little. And now the where and the
when. So you're going to be filing this online.
The, the website isn't known yet on exactly where it'll be filed,
but it will be online and when to report it,
the, there's two key things I want to talk about here.
There's one for existing businesses. And another for new businesses,
and then I'll even add when you make changes to your business.
So first, if you've, if you have an existing business,
this is going to be due by the end of 2024.
So you actually, you have quite a bit of time. You have more than
a year to get it filed, that's for existing businesses.
Well, and that's this first year as well. They're more lenient this first year,
but then in future years, I believe it's going to be due probably within
30 to 60 days after. And at the end of the year,
you're going to have to file it. And I don't think there's going to
be extensions, like it'll just be something you have to file because there's not
a lot of information you need. You don't need accounting and bookkeeping for it.
So that's for existing businesses. For new businesses,
when you, Form that new business, say, in 2024.
From what I'm seeing, it's going to be within 30 days you need to
file the form, and that's after you form it.
So just, we, like, my CPA firm,
we set up business, for people, just like the registration side,
not the legal side, but on the registration side,
that's something we're going to be doing. We just want it to be part
of the setup process. So I recommend you do the same when you get
a new business form. Just file that in the beneficial ownership information
form when you get that business formed. So then the other aspect,
the other part of it is that was for new businesses within 30 days.
You got to do it if your business changes ownership.
During 2024, there's going to be a form,
another form you have to update the same BOI form.
You have to update it and let them know about ownership changes.
So make sure you track that as well. So whether you're an existing business,
it applies. You have until the end of 2024,
but if your new business or your business changes, you'll need to follow that
within 30 days. And I believe that'll probably be the like 2025 and going
forward, it'll be within 30 days when you have a new business or you
change your business, you got to set it up. Then the last one I'm
going to talk about is like why this even matters.
So when I get matters to you as a business owner or investor,
the main reason it matters is because you don't want to be penalized for
not. Doing it. It's like a $500 a day penalty.
It's the government's way of scaring or urging people,
pushing people into doing this. Because if you don't do it,
there are going to be very high penalties.
It's going to be a simple process. You just need to add it to
your checklist of things to do every year. And just don't forget about it.
And they might be lenient with penalties the first year.
Who knows? But I wouldn't mess with it. I just make sure it's filed.
Avoid the penalty altogether and
just stay on top of it. If you're, if you're a large business,
I'd have someone like put someone in charge of this specifically or if it's
you a smaller business or smaller investment company,
just take it on yourself when you're doing your tax returns.
I would recommend doing it at that same time.
Like get the income tax return file. You're probably doing sales tax returns.
Do the BOI file.
It's not a tax return, but do the BOI form at the same time.
So that's it. That's the who, what, where, when, and why of the BOI.
It's a required form. It's not as scary and big and complex people are
making it out to be, but just remember to do it.
It's in 2024. Don't forget about it.
And I'm going to be posting information on it and when it actually comes
out that we're actually filing this, I'll give people specific advice on how to
file it, where to file it. That type of stuff,
but we're, this is the type of thing we're covering in the wealth game
in the wealth game Alliance course. We've, we're covering it there in wealth game
basics. I'll, I'll probably have some of the basic information about it in the
wealth game basics. That's our free course, but if you want more information on
it, please feel free to reach out or join those groups and we will
be happy to help you out.
