Is Your Business Compliant? Beneficial Ownership Information (BOI) Filing Requirements Under FinCEN

The Financial Crimes Enforcement Network (FinCEN) has implemented new Beneficial Ownership Information (BOI) filing requirements aimed at increasing transparency and preventing illicit financial activities. These regulations are part of the broader Anti-Money Laundering (AML) framework designed to identify and mitigate risks associated with money laundering, terrorist financing, and other financial crimes.

Why Solopreneurs Forming LLCs Need to Be Aware

For solopreneurs, particularly those forming Limited Liability Companies (LLCs), understanding these BOI filing requirements is crucial. Failure to comply can result in significant penalties and legal complications. As a life coach operating a home-based business, ensuring proper adherence to these regulations protects your business and contributes to a more transparent financial system.

Filing Requirements

Who Needs to File:

• All domestic and foreign entities registered to do business in the U.S., including LLCs, corporations, and other similar entities, must submit BOI filings.

• This requirement applies to newly formed entities as well as existing ones.

Information Required:

• Beneficial Owners: Entities must report individuals who directly or indirectly own 25% or more of the entity or exercise substantial control over it. This includes personal details such as full legal name, date of birth, address, and a unique identifying number from an acceptable identification document (e.g., passport, driver’s license).

• Company Applicants: For newly formed entities, information on the individuals responsible for filing the formation documents must also be provided.

When to File:

• Newly formed entities must file their BOI report at the time of formation.

• Existing entities are required to file their initial BOI report within a specified period following the effective date of the regulations.

• Annual updates or reports reflecting any changes in the beneficial ownership must be filed to ensure the information remains current.

Services Provided by CMK Law Group

At CMK Law Group, we offer comprehensive support for solopreneurs navigating these requirements. Our services include:

• Assisting with the formation of LLCs and ensuring compliance with all initial and ongoing BOI filing requirements.

• Managing annual report filings for LLC renewals.

• Handling BOI annual filings to keep your business compliant with FinCEN regulations.

Ensuring compliance with BOI filing requirements not only helps avoid penalties but also establishes a solid foundation for your business's legal and financial integrity. Contact us to learn more about how we can support your LLC formation and compliance needs. Feel free to set up a Small Business Strategy Session by clicking here.

Disclaimer: The information provided in this blog post is for educational and informational purposes only. It should not be construed as legal or financial advice. Viewing this content does not create an attorney-client relationship with CMK Law Group unless and until you enter into a signed engagement letter with our firm. For personalized advice tailored to your specific situation, please consult with an appropriate legal or financial professional before making any decisions.