It is unclear to me how this law applies to an LLC that was properly closed with the SOS in 2023. Is the reporting in 2024, reporting on the state of a company in 2024? Or is the reporting in 2024 reporting on the state of a company in 2023?
Thank you so much for explaining this is really helps so much. I am going to take all of this extremely seriously and get everything in order right away! 😊
INACTIVE ENTITY QUESTION: Maintained a dormant LLC that was formed in 2009, administratively dissolved in 12/31/2015 >reinstated 5 yrs later.. LLC remains dormant as of date...So, instead of continuing to waste money on annual fees to the STATE...can I just dissolve OR, am I subject to comply effective Jan 1 2024 ?
Can you clarify dormant exclusion? . If LLC was organized and registered in 2022 last year and not active, no income or expenses, does that LLC need to file?
If the entity was formed in 2022, it should not qualify for the inactive entity exemption. To qualify, it would need to satisfy all the following requirements. (A) Was in existence on or before January 1, 2020; (B) Is not engaged in active business; (C) Is not owned by a foreign person, whether directly or indirectly, wholly or partially; (D) Has not experienced any change in ownership in the preceding twelve month period; (E) Has not sent or received any funds in an amount greater than $1,000, either directly or through any financial account in which the entity or any affiliate of the entity had an interest, in the preceding twelve month period; and (F) Does not otherwise hold any kind or type of assets, whether in the United States or abroad, including any ownership interest in any corporation, limited liability company, or other similar entity.
This applies to all entities that have been formed or registered with a secretary of state or similar office, regardless of when they were formed. "Registration with the IRS" is not an exemption. @@stevenconnell2463
I’ve had a few LLCs in the past, and I typically add my daughter on my bank accounts as a beneficiary in the event, that something happens to me. 1) although she has nothing to do with the business whatsoever. Would she be considered a beneficial owner? 2) should I have her on as a beneficiary on a business account or should I set up some other entity or trust?
Great question. And if you make the change before 2024 does that remove the reporting requirement? Or would your daughter be required to be registered because they appeared as a BOI in 2023?
I’m on the website right now and it says you is red letters Please note :finCEN cannot accepts reports before January 1,2024 … so its not mandatory to do so before that date ?
Right! Or if it's under a trust without a name? He did state, there is an owner for every LLC. So you need to report the LLC, LLC, and the other LLC owners (which is you).
@@jackies35 You should talk to your own lawyer about your specific situation. If Generally, if an LLC is owned by another LLC, and neither qualifies for an exemption, then both LLCs will need to report their beneficial owners. If the Parent LLC owns 100% of the Sub LLC, then the individuals should presumably be the same. The Regulations address when trusts own 25% or more of an entity. There are five situations where a trust has to report beneficial owners. [1] A trustee of the trust or other individual (if any) with the authority to dispose of trust assets. [2] A beneficiary who is the sole permissible recipient of income and principal from the trust. [3] A beneficiary who has the right to demand a distribution of or withdraw substantially all of the assets from the trust. [4] A trust grantor or settlor who has the right to revoke the trust [5] A trust grantor or settlor who who has the right to otherwise withdraw the assets of the trust. So, when the LLC is owned by a privacy/land trust (or similar trust by other names), generally the trustee can dispose of the LLC interest, the beneficiary of that trust (usually the same person as the trustee, but it could be someone else) can demand the trust assets, and the grantor of the trust (usually the same person as the trustee and beneficiary, but it could be someone else) can both revoke the trust and withdraw trust assets. These people should be reported as beneficial owners if they have 25%+ ownership of the entity.
This is not an annual report. After the initial report, generally a report is only required if there is a change in the reported information or if the entity gains or loses its exempt status.
How will this merge with the New York State law on LLC transparency? Also, I would NOT bet on the government delaying this they learned a lot from the Obama care roll out about databases. I converted my entities to public charities that own for profit LLCs.
I have an exception for you. This probably falls under Dormant. I have an LLC opened for privacy purposes, opened around 2016. It has a vehicle in it. No money has ever transfered through it. The car was already owned before being put into the LLC. It has never been put on taxes. I'm planning to not do anything with it. There is no company.. corporation.. business.. The LLC is a made up name.
They need your SS#. Otherwise, when you file your taxes, it matches you as the owner and the beneficiary of the business/entity. This is the info they already have. There is a corporate veil that is being penetrated here. I don't like this. It's crazy and I think it's because of the PPP loans they missed to anyone and everyone during the pandemic.
Beneficial owners are not required to report their Social Security Numbers. The Reporting Companies will need to report its name, as well as any trade names or DBAs, business street address, jurisdiction of formation, and Taxpayer Identification Number, or taxpayer number in home jurisdiction (non-US entities). The Reporting Companies will need to report the following about all Beneficial Owners: full legal name, date of birth, current residential address, identification number (such as a driver’s license or passport number) or FinCEN Identifier number (available upon request from FinCEN after providing name, address, and date of birth), and include a digital copy of the identifying document. For Reporting Companies formed on or after January 1, 2024, The Reporting Companies will need to report the following about the Company Applicants (limited to two individuals): full legal name, date of birth, current business address, identification number (such as a driver’s license or passport number) or FinCEN Identifier number (available upon request from FinCEN after providing name, address, and date of birth), and include a digital copy of the identifying document.
If you have an LLC, or other entity, you need to pay close attention to this new act. It goes into play January 1, 2024!
It is unclear to me how this law applies to an LLC that was properly closed with the SOS in 2023. Is the reporting in 2024, reporting on the state of a company in 2024? Or is the reporting in 2024 reporting on the state of a company in 2023?
Is It mandatory for nonprofit Organization?
Thanks for the clearing this up for me . Companies are already trying to profit from this but I can file this myself
Thank you so much for explaining this is really helps so much. I am going to take all of this extremely seriously and get everything in order right away! 😊
Very easy to understand. Thank you. I want to start my RE businesses.
When you say certain types of Public utilities, how do you find the specifics on the types they are exempting
INACTIVE ENTITY QUESTION: Maintained a dormant LLC that was formed in 2009, administratively dissolved in 12/31/2015 >reinstated 5 yrs later..
LLC remains dormant as of date...So, instead of continuing to waste money on annual fees to the STATE...can I just dissolve OR, am I subject to comply effective Jan 1 2024 ?
What about people who have Sole props. and not LLCs ?
Thanks for the info. l had an LLC established in October 2021 and closed business in February 2023. Am l required to file even the business is closed?
Thats my question as well. I opened (and closed) an LLC in 2023 because I really dislike endless streams of paperwork.
Can you clarify dormant exclusion? . If LLC was organized and registered in 2022 last year and not active, no income or expenses, does that LLC need to file?
No.
If the entity was formed in 2022, it should not qualify for the inactive entity exemption. To qualify, it would need to satisfy all the following requirements.
(A) Was in existence on or before January 1, 2020;
(B) Is not engaged in active business;
(C) Is not owned by a foreign person, whether directly or indirectly, wholly or partially;
(D) Has not experienced any change in ownership in the preceding twelve month period;
(E) Has not sent or received any funds in an amount greater than $1,000, either directly or through any financial account in which the entity or any affiliate of the entity had an interest, in the preceding twelve month period; and
(F) Does not otherwise hold any kind or type of assets, whether in the United States or abroad, including any ownership interest in any corporation, limited liability company, or other similar entity.
I have my business registered with irs so this only for new business
This applies to all entities that have been formed or registered with a secretary of state or similar office, regardless of when they were formed.
"Registration with the IRS" is not an exemption. @@stevenconnell2463
I’ve had a few LLCs in the past, and I typically add my daughter on my bank accounts as a beneficiary in the event, that something happens to me. 1) although she has nothing to do with the business whatsoever. Would she be considered a beneficial owner? 2) should I have her on as a beneficiary on a business account or should I set up some other entity or trust?
Great question. And if you make the change before 2024 does that remove the reporting requirement? Or would your daughter be required to be registered because they appeared as a BOI in 2023?
How does this affect sole proprietor business?
And also what if the public utility corporation contracts with a local government who then contracts with two separate federal entities
What will I have to give them what documentation?
I wonder if this is being required due to the PPP and government spending during COVID.
That is exactly what it is. Catching those in the scam.
I’m on the website right now and it says you is red letters Please note :finCEN cannot accepts reports before January 1,2024 … so its not mandatory to do so before that date ?
What if you only have an LLC EIN but are not registered as an LLC with the Secretary of State yet?
If I STARTED MY LLC IN 2017 DOES THIS APPLY TO ME ? I renew my info every year.
Are family members considered indirect owner of the company?
What do you do with llc that’s owned by another llc?
Right! Or if it's under a trust without a name? He did state, there is an owner for every LLC. So you need to report the LLC, LLC, and the other LLC owners (which is you).
@@jackies35 You should talk to your own lawyer about your specific situation. If
Generally, if an LLC is owned by another LLC, and neither qualifies for an exemption, then both LLCs will need to report their beneficial owners. If the Parent LLC owns 100% of the Sub LLC, then the individuals should presumably be the same.
The Regulations address when trusts own 25% or more of an entity. There are five situations where a trust has to report beneficial owners.
[1] A trustee of the trust or other individual (if any) with the authority to dispose of trust assets.
[2] A beneficiary who is the sole permissible recipient of income and principal from the trust.
[3] A beneficiary who has the right to demand a distribution of or withdraw substantially all of the assets from the trust.
[4] A trust grantor or settlor who has the right to revoke the trust
[5] A trust grantor or settlor who who has the right to otherwise withdraw the assets of the trust.
So, when the LLC is owned by a privacy/land trust (or similar trust by other names), generally the trustee can dispose of the LLC interest, the beneficiary of that trust (usually the same person as the trustee, but it could be someone else) can demand the trust assets, and the grantor of the trust (usually the same person as the trustee and beneficiary, but it could be someone else) can both revoke the trust and withdraw trust assets. These people should be reported as beneficial owners if they have 25%+ ownership of the entity.
sir if i diaclose my llc before january 1 2025.Is it mandatory to submit BOI before disclose my llc.
Is it one time report or periodically report
It's annual reporting. If you move or have other changes, you have 30 days to update the government. The penalty is $500/day!!
This is not an annual report. After the initial report, generally a report is only required if there is a change in the reported information or if the entity gains or loses its exempt status.
What will be the workaround for the wealthy LLC owners? 🤔
How will this merge with the New York State law on LLC transparency? Also, I would NOT bet on the government delaying this they learned a lot from the Obama care roll out about databases. I converted my entities to public charities that own for profit LLCs.
We are not familiar with New York State Law unfortunately. However, the registration requirement would not be preempted by state law.
@@TaxLawGuy The New York State law makes PUBLIC the same data that the federal government is asking for.
If an llc is owned by a holding LLC who is the beneficial owner?
So we have until Jan 2025 to file.
Yes before being charged
I have an exception for you. This probably falls under Dormant. I have an LLC opened for privacy purposes, opened around 2016. It has a vehicle in it. No money has ever transfered through it. The car was already owned before being put into the LLC. It has never been put on taxes. I'm planning to not do anything with it. There is no company.. corporation.. business.. The LLC is a made up name.
Don’t waste your time asking a question. They don’t answer it.
But it is reported.. at the state level. And states have a right to govern themselves. This isn’t legal. Like at all. Government overreach.
I read in their website that the ssn won’t be asked . Only name , address , DOB and any identification number like DL or passport . It is still true?
They need your SS#. Otherwise, when you file your taxes, it matches you as the owner and the beneficiary of the business/entity. This is the info they already have. There is a corporate veil that is being penetrated here. I don't like this. It's crazy and I think it's because of the PPP loans they missed to anyone and everyone during the pandemic.
Beneficial owners are not required to report their Social Security Numbers.
The Reporting Companies will need to report its name, as well as any trade names or DBAs, business street address, jurisdiction of formation, and Taxpayer Identification Number, or taxpayer number in home jurisdiction (non-US entities).
The Reporting Companies will need to report the following about all Beneficial Owners: full legal name, date of birth, current residential address, identification number (such as a driver’s license or passport number) or FinCEN Identifier number (available upon request from FinCEN after providing name, address, and date of birth), and include a digital copy of the identifying document.
For Reporting Companies formed on or after January 1, 2024, The Reporting Companies will need to report the following about the Company Applicants (limited to two individuals): full legal name, date of birth, current business address, identification number (such as a driver’s license or passport number) or FinCEN Identifier number (available upon request from FinCEN after providing name, address, and date of birth), and include a digital copy of the identifying document.