Per the Corporate Transparency Act that’s now in effect, businesses that are not exempt and were created before January 1, 2024, are required to file a Beneficial Ownership Information Report (BOIR) by January 1, 2025. Many are flocking to their CPA for assistance with this filing, but this is a job for your corporate attorney. Why, you ask? We have three words for you: compliance, violations and penalties.
• Ensure compliance
Corporate attorneys can ensure your BOIR is compliant with FinCEN’s reporting requirements by advising you about how to file, how to determine who the beneficial owners are and what to report. Once your report is filed, your attorney can also keep tabs on updates to confirm your ongoing compliance.
• Prevent violations
If the operating agreement for your business has vague areas, now is the time for your attorney to include any necessary clauses and make sure all corporate governance documentation is accurate. This will prevent any errors or mistakes in the information submitted on your BOIR.
• Avoid penalties
Failure to file your BOIR before January 1, 2025, could result in civil and criminal penalties. Civil penalties may be up to $500 for each day the violation continues. Criminal penalties could include a fine of up to $10,000 and a prison sentence of up to two years.
FinCEN allows corrections of mistakes or omissions on your BOIR within 90 days after submission, but why take chances when the potential consequences are so severe? Your attorney’s fees for assistance with your BOIR filing will be well worth your peace of mind in comparison to the possible costs of a violation. Our firm is here to offer advice that helps your business succeed. In this case, we strongly advise you to retain your corporate attorney’s services.