Construction/Real Estate
Beneficial Ownership Reporting: What You Need to Know Before 2024
Beginning January 1, 2024, companies will need to report their beneficial owners as described in the Corporate Transparency Act which passed in 2021.
Governed by the Financial Crimes Enforcement Network (FinCEN), anyone who, directly or indirectly, owns or controls at least 25% of a company will need to furnish specific data electronically using a secure filing system via the FinCEN website.
There are 23 specific exemptions to filing (which can be found in detail at https://www.fincen.gov/boi).
Within the list of exemptions, there are some broad exclusions such as:
- Tax Exempt Entities
- Large Operating Companies
- Inactive Entities
For entities that were created BEFORE January 1,2024, the filing deadline will be January 1, 2025. For entities created AFTER January 1, 2024, you will need to report this information 30 days after creation
While there is no fee for submitting the information, failure to submit can result in stiff penalties.
To ensure you are correctly filing this information, we suggest you reach out to your legal counsel as the rules can be tricky.
To learn more about how LGT can serve you, contact us here.
Matt Dobay, CPA, MAcc
Matthew, who leads our tax department, brings more than 15 years of professional experience, specializing in areas like corporate tax structuring, compliance, and long-term tax planning. He adeptly tailors strategies to align with each taxpayer's unique needs and meticulously presents tax adjustments as part of his comprehensive tax compliance responsibilities. Furthermore, he spearheads complex research projects and proactive tax planning analysis throughout the year. Underpinning all his duties is a strong focus on client service, which he further instills within the firm through effective supervision and training of staff, ensuring consistent delivery of top-notch service and fostering a culture of continuous learning.
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