Beneficial Ownership Information (BOI)
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. As a business owner, staying on top of compliance requirements is essential to avoid penalties and protect your company’s reputation. A new federal regulation that may impact your business is the Beneficial Ownership Information (BOI) reporting requirement. In this blog post, we’ll break down what BOI reporting is, who needs to comply, special considerations for community property states, and how Sorge CPA & Business Advisors can help you navigate these new regulations.
What Is BOI Reporting?
BOI reporting is a mandate from the Financial Crimes Enforcement Network (FinCEN), requiring certain businesses to report information about their beneficial owners. Beneficial owners are individuals who own or control at least 25% of a company or have significant influence over its operations.
The goal of BOI reporting is to increase transparency and combat financial crimes like money laundering, tax evasion, and terrorism financing. By tracking beneficial ownership, authorities can better monitor and prevent illicit activities.
Special Considerations for Community Property States
If your business operates in a community property state, there are unique considerations for BOI reporting. Community property laws mean that assets acquired during marriage are generally considered jointly owned by both spouses. This can impact the calculation of beneficial ownership.
Here’s what you need to know:
- Joint Ownership: In community property states, a spouse’s ownership in a business could be considered 50%, even if only one spouse is directly involved in the business. This can affect whether an individual is classified as a beneficial owner.
- Spousal Reporting: If a spouse is deemed to own 25% or more of the business through community property laws, both spouses may need to be reported as beneficial owners.
- State-Specific Rules: Community property states, such as Wisconsin, California, Texas, Arizona, and others, have specific regulations that could influence BOI reporting. It’s essential to consider these state laws when determining beneficial ownership.
Given the complexities of community property laws and their impact on BOI reporting, it’s crucial to work with professionals who understand both federal and state regulations. See how Sorge CPA & Business Advisors can help below.
How Sorge CPA & Business Advisors Can Help
Navigating the complexities of BOI reporting, especially in community property states, can be challenging, but you don’t have to do it alone. Sorge CPA & Business Advisors is here to help you determine if your business is subject to these requirements and to manage the filing process for you.
Here’s how we can assist you:
- Compliance Assessment: We’ll review your business structure, ownership, and state-specific laws to determine if BOI reporting applies to you.
- Filing Preparation: If you’re required to file, we’ll gather the necessary information and complete the filing process on your behalf.
- Ongoing Support: We’ll keep you informed about any changes to BOI reporting requirements and ensure your business remains in compliance.
Get in Touch with Us Today
Don’t wait until it’s too late. If you’re unsure whether your business needs to comply with BOI reporting, especially if you operate in a community property state, like Wisconsin, reach out to us today. Our team is ready to help you stay compliant and avoid any penalties.
Contact Us:
- Email: sorgeboireporting@sorgecpa.com
- Phone: 608-699-6641
At Sorge CPA & Business Advisors, we’re committed to supporting your business and ensuring you meet all regulatory requirements. Let us take the worry out of compliance so you can focus on what you do best running your business.
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