Simple Beneficial Ownership Report for Your Firm’s Clients
As of January 1, 2024, the Corporate Transparency Act has come into effect, mandating most businesses in the USA to file a Beneficial Ownership Information (BOI) report. Consequently, at FincenFetch, the leading BOI filing software in the nation, we understand the complexities this new requirement introduces. Therefore we will walk you through three key considerations to determine if you need to file. Additionally, we’ll show you how you can file a simple Beneficial Ownership report for your clients.
1. Business Structure Check: Understanding Your Filing Requirements
Does your business structure necessitate a Beneficial Ownership report? If you’re not sure, then here’s how you can determine your obligations based on your business type:
Corporation:
- Ownership Structure: Corporations are generally composed of shareholders who own shares representing a proportional stake in the business.
- Decision-Making: A board of directors, elected by shareholders, makes major decisions, defining the company’s hierarchical decision-making process.
Limited Liability Company (LLC):
- Ownership Structure: LLCs are known for their flexibility, allowing various ownership structures. Members hold interests that dictate their ownership share.
- Decision-Making: Members directly influence decisions or may delegate these responsibilities to managers, highlighting the structure’s adaptability.
Understanding whether your business is a corporation or an LLC is crucial as it affects your filing requirements under the new act.
2. Simple Beneficial Ownership Report Assessment: Key Thresholds to Consider
Secondly, filing a Beneficial Ownership report may depend on several operational thresholds:
- Employee Threshold: Does your firm employ 21 or more full-time employees?
- Sales Threshold: Did your business report over $5,000,000 in sales on the last year’s tax return?
These thresholds help determine if your small operating company must file a report, generally characterized by having fewer than 20 full-time employees, no physical office in the U.S., and less than $5 million in gross receipts from U.S. sources.
3. Corporate Transparency Act Exemptions
Navigating the exemptions can significantly impact whether you need to file a report. Therefore FincenFetch created our Exemption Checker. To explain, this feature simplifies the process by cross-referencing your business details against 23 possible exemptions.
Accessing the Tool:
- Start by entering your business details into the FincenFetch Exemption Checker to determine your filing status right away.
How to File a Simple Beneficial Ownership Report for Firms:
Meanwhile, watch the demonstration video of our software’s dashboard below to learn how to file a simple Beneficial Ownership report and begin your compliance journey with a hands-on demo of FincenFetch.
Simple Beneficial Ownership Report Step-by-Step:
- Log In:
- Access your firm’s FinCenFetch account to see your clients and filings.
- Review the Filings:
- Look for filings marked “Review Pending.”
- Complete their reviews to update the status to “Ready to File.”
- Start E-Filing:
- Click the e-filing button for any “Ready to File” report.
- Confirm your intention to submit the filing to FinCen (takes about 15 minutes).
- Error Check:
- If there are errors (e.g., incorrect data), the system will return the filing for corrections and re-review.
- Track Your Filing:
- Check the tracking table to see the submission status (queued, accepted, or requiring attention).
- Access and Share Results:
- Once filed, FinCen transcripts are available to clients and your team.
Start Filing a Simple Beneficial Ownership Report with FincenFetch
Figuring out the requirements of the Corporate Transparency Act can be frustrating. However, with FincenFetch, you can streamline the process, ensuring that your clients are fully compliant with federal regulations. Additionally, Our tool is designed to make BOI reporting simple and stress-free, allowing you to focus on what you do best—running your business. Schedule a demo with our team today!
