if you didn't know there's a new law in effect for 2024 it's called the corporate transparency Act and the deadline to file is December 31st of 2024 essentially the US government is going after small businesses you must file this report otherwise you will be penalized up to $10,000 and $591 a day in up to two years in jail large companies that make more than $5 million are exempt from this new rule the government is forcing you to report your personal information to crack down on money laundering and illegal activities if you don't submit those are
the consequences so here's what's going on the corporate transparency Act passed in 2021 and went into effect this year in 2024 if you own a small business you must report your personal information to finsen the financial crimes enforcement Network so you can do so here this is their official Government website and I want to answer frequently asked questions and this is coming straight from the finsen website small business owners must file their beneficial ownership information so why do companies have to submit this reports what's the purpose so they say it's now a reporting requirements as
part of the US government's efforts to make it harder for Bad actors to hide or benefits now what information will a reporting company have to report about its beneficial owners you will need to submit your name date of birth residential address and your driver's license or your passport so who will be able to access this information that you submit it's going to be federal agencies State local and Tribal Law enforcements officials at the department of the treasury foreign law enforcement agencies foreign judges foreign prosecutors foreign authorities financial institutions and federal Regulators now what are the
penalties for violating Boi requirements so in the bottom half it says a $10,000 fine and up to 2 years in prison and what I outlined says civil penalties of up to $500 for each day the violation continues but they adjusted it for inflation from 500 a day to $591 a day now when do you need to file your report bu with fincent if you created your business before 2024 you must file by January 1st 1 of 2025 if you created your business in 2024 you must file within 90 days of creating your business so going
forward if you create your business in 2025 or after you have 30 calendar days to file your reports from when you form your small business now if you are unaware of this new law it's because finen probably did a bad job of telling small business owners about this so it says how will companies become aware of the Boi reporting requirements so finsen says that they would they would raise awareness with a robust outreach program that involves virtual and in-person Outreach events and social media so I just want to ask you this could you imagine an
event like an in-person event like that Financial crimes enforcement Network party about Boi requirements I mean that's that's not something that sounds too appealing now what I don't like about this program well I mean I don't like this program at all so I I would say what I really don't like about this program is that it gives exemptions so the purpose of this new law is to prevent money laundering and illegal activities right however banks are exempt money service businesses are exempt Venture Capital funds are exempt and large companies are exempt so take a look
it says it right here there's an exemption for certain inactive entities and another exemption for any company that reported more than 5 million in gross receipts or sales so essentially this only applies to small businesses if there's any large companies out there that are participating in illegal activities or money laundering then they're exempt from reporting this and giving their giving their information now some people are going to make the argument that large companies should be exempt from this because they they face more disclosures but I would argue that not all of them are so if
the US government's going to make small businesses subject to this new rule the least that they can do is make the big businesses do this as well like how is this Fair now this new rule will affect 32 million small businesses in the United States of America so I want to show you the process I want to talk a little bit about the potential repeal of this and also the criticism so if you want to file this new report you have to go to the finsen website which is an official government website and then you
click on file which I highlighted in Red so that will take you to this page and then you click on file boir and that will take you here and then you click on prepare and submit boir and then from there they want you to answer their questions and have your driver's license or your passport ready because you'll have to submit a photo of it now another option is if you have a Peril software like Gusto you can submit your report through them so this video is not sponsored by Gusto it's just an example now I
want to share this very important information with you if you have an S corporation or a C corporation then you need to file this report if you are a sole proprietor then you do not need to file a report if you are an LLC taxed as a soul proprietor then you you do need to file so essentially if you created a business entity with the Secretary of State then you need to file now let me know what you think about this is this government overreach or is this no big deal do the pros outweigh the
cons or vice versa so just so you know many politicians in Congress they're trying to overturn this they're trying to repeal this the corporate transparency act so here's a quote from Senator tuberville the corporate transparency Act is big government overreach at its worse here's Congressman Warren Davidson the treasury Department is attempting to create a database on every American business owner failure to register by the end of the year could land you in jail this unprecedented intrusion into personal privacy must be stopped now here's a bill in the house of represent that is trying to repeal
the corporate transparency act however 7 months have passed by and it's just been sitting there so perhaps it will get repealed into new Administration however this new law it's now in effect okay so that's my heads up to you and I do not like this I don't like how the government is forcing Americans law-abiding Americans to give their information to the financial crimes enforcement Network I don't like how they're giving a pass you know exemptions to Big corporations as well like if they're going after Big Time criminals to stop money laundering illegal activities shouldn't they
be going after them like this ridiculous but that's just my opinion Please Subscribe I thank you for the support and wish a very nice day take care
