New Reporting Requirement for Businesses

You probably haven’t, because it’s pretty new. 

And it might sound like a mouthful, but don't worry.  I can break it down for you in plain language. This rule is all about transparency and making sure everyone knows who's really running the show in your business. Let's dive in and learn more about what it means for you.

Let's start with the basics. The Beneficial Ownership Information Reporting Rule is a government regulation that asks businesses like yours to share some important info about the people who really own or control your business. These folks are called "beneficial owners," and they're the ones calling the shots behind the scenes.

Why does it matter? You might be wondering why you need to bother with all this reporting stuff. Well, it's actually pretty important for a few reasons. First off, it helps stop bad guys from using businesses to do bad stuff, like laundering money or funding terrorism. By shining a light on who's really in charge, we can keep our financial system safer and more secure.

But it's not just about stopping the bad guys – it's also about being transparent and trustworthy. When you're open about who's involved in your business, it builds trust with your customers, investors, and partners. They know exactly who they're dealing with, which is super important for building strong relationships.

What do you need to report? Okay, so now that you know why it's important, let's talk about what you actually need to report. It’s pretty simple.  You’ll need to share some basic info about your beneficial owners, like their names, addresses, and how much of the business they own or control. It's kind of like filling out a form with some personal details, but for your business instead.

How can you make sure you're doing it right? Complying with the Beneficial Ownership Information Reporting Rule might sound complicated, but it's actually pretty straightforward if you follow a few simple steps:

1. Know the rules. The Treasury Department has created a couple of documents to help with this.  The first is a compliance guide for small businesses and you can download it BY CLICKING RIGHT HERE.  There is also a FAQ page where you can gain some more answers and you can access that THROUGH THIS LINK.
2. Figure out who your beneficial owners are. These are the people who own or control at least 25% of your business, so make sure you know who they are and how much they own.
3. Gather the info you need for the form. Once you know who your beneficial owners are, gather up all the info you'll need to report about them, like their names, addresses, and ownership percentages.
4. Go online and file your report.  To get started, CLICK HERE.

Last but not least, you might be wondering what the deadline is for filing this report.

If you were already doing business on January 1, 2024, then you have until January 1, 2025 to file your report.  If you just created your company in 2024, then you have to file this report within 90 days of the date that you filed your Articles of Organization or Articles of Incorporation with the Indiana Secretary of State.

So there you have it.  Everything you need to know about the Beneficial Ownership Information Reporting Rule. Remember, it's all about transparency, trust, and keeping our financial system safe and secure. By reporting accurately and on time, you're not just following the rules – you're also showing the world that you're a responsible business owner who cares about doing things the right way. Keep up the good work!

If you have more questions or need some help with meeting your reporting requirements give us a call.  We'd be glad to help. Our number is 317-456-5315.