New Business Tax Compliance Requirements

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In this episode, we have important information for small businesses, especially registered ones like LLCs or corporations. Starting January 1st, 2024, almost every corporation or business (except sole proprietorship or partnership without an entity) must file a beneficial ownership information report. This one-time filing is required for anyone owning 25% or more of the company or those exercising substantial control. The deadline to file is December 31st, 2024, for companies created on or before December 31st, 2023.

If your entity was created in 2024, you have 90 days to file from the creation of your LLC. For entities created on January 1st, 2025, or later, you have 30 days to file. If there are any changes to the beneficial owners, you must file an amended report within 30 days.

It's crucial to comply with these requirements to avoid issues with the government. Failure to comply may result in civil fines of up to $500 per day per entity, criminal charges, up to two years of prison time, and a criminal fine of up to $10,000. Despite the inconvenience, it's best not to wait and file on time.

Now, let's talk about seeking legal assistance for filling out the report. There is an option to contact Matthew, a tax attorney who is now offering accounting services to select clients. He can provide a consultation to determine if his services are required. The cost for his assistance would be $250 plus $25 for each additional beneficial owner after the fourth. However, it's important to note that this is not necessary for most businesses.

So, if you have a formal business like an LLC, it's essential to stay focused and continue doing great work, despite any challenges imposed by the authorities. Remember, complying with these reporting requirements is crucial for your business to avoid any legal complications. Stay informed, stay compliant, and keep moving forward.