LLC property owners need to file their FinCEN report to avoid penalties.
Do you own a rental property under an LLC? Then, you should know the new federal reporting requirement you can’t afford to ignore. Missing it could mean paying fines or even criminal charges. But don’t worry because I’ve got you covered.
I’m here to give you all the details you need to know about the FinCEN BOI report, what it is, who it applies to, and what you must do to file it to stay compliant and avoid any nasty fines.
What is the FinCEN BOI report? The BOI stands for Beneficial Ownership Information. It’s part of a federal effort to increase transparency in business ownership and crack down on issues like money laundering and fraud. If you own an LLC or any other type of entity, this new rule requires you to report who is behind the business. This means sharing some key details about yourself or other owners of the LLC.
This is a mandatory requirement that you need to submit on or before January 1, 2025. The penalties for skipping it can be severe, with fines of up to $500 a day and potential criminal charges. It’s not worth the risk, and it’s quite easy.
“Don’t procrastinate—file your FinCEN BOI report to protect your investment and avoid hefty fines.”
Who needs to file this report? If you own a rental property through an LLC, this applies to you. The law states that any beneficial owner of an LLC is defined as anyone who owns at least 25% of the company or has substantial control over it. Whether it’s you or you have business partners, you’ll need to file this report with all the required information.
You might be wondering if anyone is exempt. Unfortunately, only a few exemptions exist, primarily for publicly traded companies. Most small businesses and LLCs, especially those holding rental properties, do not fall into this exemption category.
What information is required? The form is pretty simple, but you want to have everything ready. You’ll need to provide the following:
• Full legal name
• Birth date
• Current address,
• Unique identifier like a driver’s license or passport number
That’s it. It’s straightforward and takes about ten minutes. Double-check your entries because mistakes can lead to delays and potential penalties.
How do you file the report? It is submitted online through the FinCEN online portal. You can click on this link to file now. Don’t forget to update the report if you change anything or add a new member to your LLC; you’ll have 30 days to do so.
It’s best to consult with an accountant or someone else who can provide the right advice and guidance if you have any questions about completing this report. This is not something to procrastinate on because the end of the year is coming, and you want to protect your LLC and investment.
Please file this report as soon as possible. It only takes a few minutes, and it’s a relief to have it checked off your list.
We’re always here if you live in Northern Virginia and have questions about this or need help managing a rental property. You can call us at 703-471-4800 or send an email to info@richeypm.com.
