Hey everyone, I'm a licensed CPA and just shared a post on Twitter about the new 2024 LLC reporting requirement.

Since this requirement would apply to a huge amount of entrepreneurs in this sub, I thought I would share it here.
The new requirement is called Beneficial Ownership Information (BOI) report with FinCen coming in 2024.

Who needs to file?
The BOI report requires that all “reporting companies” must file the report.
Generally, if the company files documents with the secretary of state (i.e. LLC), it will be a reporting company.

Unless it qualifies for an exemption:
There are 23 specific types of entities that are generally not required to form a BOI report.
Here are the most applicable ones:
- Accounting firm
- State licensed insurance provider
- Investment advisor or Investment company

- Venture Capital Fund Advisor/Pooled Investment Vehicle
- Tax exempt Entity
- Inactive Entity

- Vent
What happens if I don't file?
The failure to report complete or updated beneficial ownership information (BOI) to FinCEN may result in a civil or criminal penalties.
This will include civil penalties of up to $500 for each day that the violation continues.
Beneficial owner
If you are a reporting company who must file, your next step is to identify the beneficial owner:
A beneficial owner is any person who:
• Exercises substantial control over a reporting company OR
• Owns or controls at least 25 percent of the ownership.
Generally this would be you and/or your spouse on the LLC.
Company applicant
Not all reporting companies are required to report their company applicants to FinCEN.
You are required to report its applicant IF:
- Company created on or after Jan 1, 2024
Not required if it's a domestic company created before Jan 1, 2024.
What will the report ask?
It will ask information about the reporting company (U.S. address, name, EIN)
And information about the beneficial owner and/or applicant (Legal name, DOB, driver license/passport, address)
When should my company file the BOI report?
If your company already exists as of January 1, 2024, it must file its initial BOI report by January 1, 2025.
If your company is created after January 1, 2024, then it must file its initial BOI report within 30 days.
How do I submit a report?
If your company is required to file a BOI report, you must do it electronically through a filing system.
FinCEN’s filing system is currently under development and will not be available until January 1, 2024.
Final thoughts
Seems like a bs requirement.. As a reminder, I'm not your advisor or CPA, and this all is just my interpretation of the rules. As such, please contact a licensed professional who will be able to help you with this filing.