Navigating Beneficial Ownership Information Reporting for LLCs and Corporations
Early Childhood Business Solutions is here to guide you through the new requirements of the Corporate Transparency Act (CTA) that could impact your child care business. Here’s what you need to know about Beneficial Ownership Information (BOI) reporting.
Effective January 1st, 2024, the CTA requires many U.S. companies to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. This legislation, enacted in 2021, aims to prevent and combat tax fraud, money laundering, and financial terrorism.
Who Needs to Report?
If you’re a child care provider, you might need to submit a BOI Report if you meet certain criteria. Reporting companies include:
- Corporations
- Limited liability companies (LLCs)
- Entities created in the U.S. by filing with a state secretary or similar office
- Foreign entities registered to do business in the U.S.
What is a Beneficial Owner?
A beneficial owner is an individual who directly or indirectly owns or controls a company. Reporting this information helps maintain transparency and prevents illicit activities.
Filing Deadlines
- Existing Companies: If your company was created or registered before January 1, 2024, you have until January 1, 2025, to report BOI.
- New Companies in 2024: Report BOI within 90 days of your company’s creation or registration.
- Companies Created on or After January 1, 2025: File BOI within 30 days of registration.
No Cost to File
There are no fees to file your BOI Report. Beware of scammers claiming otherwise.
Consequences of Non-Compliance
Failing to file a BOI Report can lead to civil penalties and criminal penalties, including imprisonment and fines.
Questions?
Contact our Statewide Support Line at 602-265-4768 or email us at [email protected],
File your BOI report at https://www.fincen.gov/boi.