05/23/2024
Educational...... Beneficial Ownership Reporting IRS
Sometimes, it is worth paying a professional to do something for you rather than pay the fine later.
For corporations and LLCs you need to file BOI with IRS. this rule went into effect this year. There are so many issues that you will not find on searching online. The fine is calculated on a daily basis and includes jail time for not reporting. Incorrect reporting is not reporting.
The "Beneficial Owner" definition is not a simple question. It is complicated. For example, to define a beneficial owner you need to know:
1) if the Corp or LLC is owned by another trust, corp or LLC,
2) if the members or shareholders are married,
3) If trust, who are the beneficiaries,
4) if trust What type of trust, Revocable, irrevocable makes a huge difference.
5) Is the trust an accumulating trust?
6) Are the beneficiaries current beneficiaries or future beneficiaries.
7) does the trust have a special co-trustee or investment trust.
8) if trust who is the trustee
9) if the members or shareholders have a prenuptial or postnuptial agreement,
10) who runs the corp/LLC, does it have an executive team, a manager, does it have an attorney. An accountant could also be a Beneficial owner by asserting control. the simple manager could also be a Beneficial owner by having control
11) There are so much more.
There isn't a day that I have someone in my office that is upset because they acted so-called "Persian". Corporations and LLCs have rules and you need to follow them, you do not live in the Middle East or any other country that does not have a rule or you could have done business with a handshake.
Tread Carefully.
