Congress recently made a new law, the Corporate Transparency Act (CTA), which is a significant departure from previous U.S. business reporting. The CTA is administered by the Financial Crimes and Enforcement Network (FinCEN), overseen by the U.S. Treasury Department. One of the requirements of the CTA is a Beneficial Ownership Information (BOI) report, disclosing certain interested parties and investors in eh business.
The aim of the CTA is to prevent illicit activities such as money laundering or funding hostile foreign organizations through the use of shell corporations. However, this change has a significant effect on businesses whose interests are on the up-and-up. If you’re worried about how the CTA will affect your business or are unsure about what your obligations are, don’t worry. The Florida beneficial ownership information reporting lawyers from Crepeau Mourges are here to answer your questions and advise you of any steps you need to take to remain compliant with the CTA.
Keeping Compliant With The CTA’s Beneficial Ownership Information Report
If your organization isn’t exempt (and there are a lot of exemptions, 23, in fact), then you must submit a BOI now and any time that your business structure changes or your ownership/ investors change. The BOI information is collected by the FinCEN and, as necessary or required by law, disseminated to other government agencies. Any business entity that has formed a corporation that falls into the category of a “domestic reporting company” or “foreign reporting company” (for foreign-owned businesses operating in the U.S.) must file the BOI report.
The BOI report contains information about individuals with a controlling or significant ownership interest in the business or those with certain financial benefits from the corporation. A BOI report must contain the following information about each individual:
- Their full name and date of birth
- Complete current address
- A unique identifying number (such as a state ID card, U.S. passport, or state driver’s license) and an image of the document displaying that number
This information is used to generate a unique FinCEN identifier for the individual. This isn’t the extent of the BOI requirements. There is a lot more; determining which individuals must be reported and which may not can get tricky. That’s where we come in: to prevent an error or omission from becoming big trouble for your business.
How Will Florida Beneficial Ownership Information Reporting Lawyers Help Me?
Our legal team has spent an extensive amount of time analyzing the requirements of the CTA and determining how we can best implement strategies for compliance with our clients. We can evaluate your current policies and procedures and identify any changes you should make.
We can also calculate which owners or stakeholders need to be reported on the BOI and which do not. We’ll also keep abreast of changes to the CTA as they happen so that your business remains compliant.
Professional Advice For Your Business BOI
If your business is not one of those that qualifies for an exemption, then you have to act fast, as the deadline for filing a BOI is short. We’ll help you get there. The Florida beneficial ownership information reporting lawyers from Crepeau Mourges are ready to help you calculate ownership percentages, complete the BOI, and file on time. Call us today to get started.
Penalties For Non-Compliance With BOI Reporting In Florida
As our Florida Beneficial Ownership Information reporting lawyers can tell you, non-compliance with Beneficial Ownership Information (BOI) reporting requirements in Florida can lead to severe consequences. These penalties are designed to ensure transparency and prevent illegal activities like money laundering and tax evasion. Understanding these penalties is crucial for any business to maintain compliance and avoid substantial fines and other legal repercussions. Attorney Brian Crepeau is a Certified Public Accountant and Certified Fraud Examiner, so he brings a unique and well-rounded perspective to each client.
Civil Penalties
The primary consequence of failing to comply with BOI reporting requirements is the imposition of civil penalties. If an entity fails to file the required BOI reports or submits inaccurate information, it can face significant fines. Each day of non-compliance can accrue additional penalties, leading to a considerable financial burden. For instance, entities can be fined up to $500 per day for each day they are non-compliant. This can quickly add up, especially if the non-compliance goes unnoticed for an extended period.
Criminal Penalties
In addition to civil fines, our Beneficial Ownership Information reporting lawyers in Florida know that non-compliance with BOI reporting can also lead to criminal charges. Willfully failing to file BOI reports, providing false information, or knowingly submitting misleading information can result in severe criminal penalties. These penalties may include substantial fines and imprisonment for individuals responsible for the non-compliance. For example, individuals can face fines up to $10,000 and imprisonment for up to two years. These penalties underscore the importance of accurate and timely BOI reporting.
Impact On Business Operations
Non-compliance with BOI reporting requirements can also adversely affect business operations. Entities found in violation may face reputational damage, which can erode trust with clients, investors, and partners. This loss of trust can lead to decreased business opportunities and a tarnished public image. Additionally, non-compliant entities may encounter difficulties in securing financing or engaging in transactions with other businesses that prioritize compliance.
Legal And Administrative Costs
Dealing with the aftermath of non-compliance can be costly and time-consuming. Entities may need to hire legal counsel to navigate the complexities of resolving non-compliance issues, which can result in substantial legal fees. Moreover, the administrative burden of rectifying non-compliance, including the time and resources required to gather and submit accurate information, can be significant. These costs further highlight the importance of maintaining compliance from the outset.
Ensuring Compliance
To avoid these penalties, it is essential for businesses to understand their BOI reporting obligations and take proactive steps to ensure compliance. This includes regularly reviewing and updating beneficial ownership information, staying informed about changes in reporting requirements, and maintaining thorough records. Consulting with legal professionals who specialize in BOI reporting can provide invaluable guidance and help mitigate the risk of non-compliance.
Call Our Office Now
If you have any questions or need assistance with BOI reporting in Florida, contact us at Crepeau Mourges. Attorney Brandon Mourges worked in tax controversy and criminal defense prior to forming Crepeau Mourges, and has the experience needed to help you and your business. Our experienced team is here to help you navigate the complexities of compliance and protect your business from costly penalties. Reach out to our Florida Beneficial Ownership Information reporting lawyers today to schedule a consultation and learn more about how we can assist you.
