The federal law aims to increase transparency and curb financial crimes. That means telling Uncle Sam if you are a beneficial owner of a business.
"A beneficial owner is an individual who owns a 25% ownership interest in the entity, or someone who exerts substantial control over the decision making for the company," Hays said. "Anyone who owns a rental property through an LLC, a side hustle through an LLC," Hays said,"if they have an entity, unless a specific exemption applies, they will be required to file this report.
For a one-man band type, Hays said this filing can take you about 15 minutes. For larger businesses, it can be a more involved project. If you willingly fail to file, you can face fines of up to $500 per day, or two years of imprisonment. A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report.