Ahoy, entrepreneurs! Gather ’round and lend an ear. We’re about to embark on a journey into the mysterious world of beneficial ownership and the impending Transparency Act. I promise, it’s not as daunting as it sounds. There’s no need to abandon ship just yet. This is your chance to navigate the stormy seas of financial reporting with grace, agility, and, most importantly, a sense of humor.
Let’s start by addressing the elephant in the room. Yes, changes are coming, and they’re scheduled to take effect on January 1st, 2024. But hey, who doesn’t love a good plot twist? It’s like a cliffhanger at the end of your favorite Netflix series, except this one involves the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Internal Revenue Service (IRS). Talk about a power trio!
Now, you might be wondering what this means for you and your business. Let’s break it down. The new reporting requirement targets those with substantial ownership interests exceeding 25%. Basically, if you’re in the big leagues, the authorities want to know. The goal here is to tackle illicit activities like money laundering and terrorism. So, unless you’re a James Bond villain, you have nothing to worry about.
But wait, there’s more! If your business falls under certain categories like publicly held companies or large operating entities, congratulations! You’re exempt. But for those smaller entities and family-owned businesses, brace yourselves. You’re the stars of this show.
So, what exactly do you need to report? Well, apart from the usual suspects like the legal name of the company, tax identification number, and business addresses, there’s a new addition to the roster: beneficial owners. If you own over 25% or have substantial control, you’ll need to share some personal details. It’s like a getting-to-know-you session, but with the government.
As for the timeline, there’s good news and bad news. The good news? If you’re an existing entity, you get a grace period until January 1st, 2025. The bad news? If you’re planning to form a new entity in 2024, you only have 90 days to register with FinCEN. Talk about a race against time!
And that’s not all. After 2024, the reporting landscape will continue to evolve. With a 30-day window for reporting the beneficial ownership of any newly formed entities, it’s clear that we’re heading into uncharted waters.
But fear not, dear entrepreneurs. At Calculated Moves, we’re here to help you navigate these stormy seas. From strategic planning to financial preparedness, we’re your trusted partners in crime (the legal kind, of course). So, say goodbye to accounting headaches and expensive mistakes, and say hello to smooth sailing.
It’s always best to leave it to the pros. After all, you’ve got better things to do than crunch numbers, like doing what you love. So, hoist the sails, chart your course, and let’s set off on this adventure together. The horizon is waiting!
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Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.