Government Mandated New Year’s Resolution For Your Business – Thompson Von Tungeln

Happy New Year! Can you believe it’s already 2024? Of course that means it’s New Year’s Resolution Time. Do you have one for your business? The government does!
Effective January 1, 2024, under the Corporate Transparency Act (CTA) beneficial ownership information for business entities such as LLCs, S Corporations and C Corporations must be disclosed to the Financial Crimes Enforcement Network (FinCEN). This information will be made available to the IRS, law enforcement, certain other agencies and entities through a new federal government database called the Beneficial Ownership Secure System (BOSS). While there are certain exceptions, anyone (1) exercising substantial control over the reporting company; or (2) owning or controlling at least 25% of the ownership interest of the reporting company is required to file.
If you are a business owner with an LLC or a corporation, please do not ignore this new law. According to the CTA, anyone who willfully violates the reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
While no one welcomes yet another government burden, why not make lemonade out of lemons? With massive state budget deficits and an increasingly aggressive FTB and IRS, businessowners using LLCs and S Corps in particular should contact us for a free initial consultation to learn about recent changes in the law and business taxation that might make a significant difference in profitability and tax efficiency.
The business law attorneys at Thompson Von Tungeln are unparalleled in the area with experience and expertise in corporate, finance, tax and other business matters from top international law firms and law schools. Start your business off on the right foot by calling us at (661) 945-5868 (or visit us at www.TrustTVT.com) to make your no-cost appointment today!
Happy New Year!