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December 18, 2024 • 16 mins

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Please note: There is a temporary pause in enforcement of the BOI Report filing following a significant court ruling this month. Though we do think the BOI report will eventually need to be filed at some point.

This episode walks you through how to file your BOI report on the FINCEN website if you have not yet filed!

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
So since recording this episode that is airing
today, there have been some taxlaw changes.
So we love when that happens.
We have been preparing for theBOI reports all year, filing a
bunch of them, and then now theyare changing the law.
So there was a Texas courtjudge who said okay, this BOI

(00:22):
reporting is unconstitutional.
Who said, okay, this BOIreporting is unconstitutional.
So what that means is that theBOI reporting requirements have
been affected by that and thatfederal court order.
So right now there's a halt andthat filing is not going to be
due.
That just means that if youdon't file it, you're not going

(00:44):
to be punished and we just haveto wait and see what happens.
So a couple of thoughts on this.
Yes, the law's changed, butthey have actually already
appealed that order.
So there's going to be a lot ofchanges with this and very
likely we're still going to haveto file the BOI report.
So, number one it just won't bedue on December 31st.

(01:10):
And the second thing that peopleare concerned about is that
they don't want to submit thisinformation to the government,
and I totally get that.
We are Texans, we like ourfreedom and we don't like the
government to be in our business.
But this one thing is kind ofsilly, just because they already
have this information.
The report is very simple.

(01:32):
You're submitting your EIN,your address, your name, all of
that, and that's somethingthat's already on your tax
return.
So if that's something thatyou're worried about, I mean
it's not really anything thatthe federal government doesn't
already have.
We do understand that this hasbeen such a pain in the butt for
most people.
Whenever they all of a suddensay, okay, here's a new filing

(01:54):
requirement and then, like allof the clients that have paid us
to do it because they didn'twant to do it and didn't want to
take time out of their day todo it, now they're like, oh, we
don't have to.
So we absolutely agree thatthey shouldn't be putting more
work on business owners.
So hopefully we don't have toend up filing this, but we do

(02:15):
think that that is very likelythat you're still going to have
to file the BOI report.
The next thing is that you canstill file it online.
We're still finishing up somefor clients just saying like,
hey, we were getting to yours.
Here's what's happening.
Do you still want to file?
A lot of people said, yeah,let's just go ahead and file it

(02:37):
and just check it off my to-dolist.
So if you do want to still fileyour BOI, this episode will be
perfect for you because I amjust walking you through how to
do it, so you can sit down atyour computer and go through all
the steps with me so that youknow you're doing it right and
just know it's a pretty simpleand easy, very quick filing.

(02:58):
So if you're like that, youdon't have to worry about it
next year, you don't have toworry about keeping up with all
of the updates as it goesthrough all the court cases, and
you can still go ahead and file.
It's still online and I'm goingto walk you through that today.
I think a lot of people arescared to do this filing
themselves, but it's really asimple filing.

Speaker 2 (03:26):
Welcome to what your CPA Wants you To Know.

Speaker 1 (03:29):
Tax and accounting help can be expensive, so we've
created this podcast to helpguide you through it all and
make you feel like you have aCPA in your back pocket.

Speaker 2 (03:39):
I'm Carson Sands.

Speaker 1 (03:41):
And I'm Taryn Sands.

Speaker 2 (03:42):
I'm a CPA with over 10 years of experience helping
people start and grow theirbusinesses.

Speaker 1 (03:48):
And I'm an MBA with a specialization in marketing and
entrepreneurship.
Taxes suck and we want to makesure you don't pay more than
your fair share.
Taxes suck and we want to makesure you don't pay more than
your fair share.

Speaker 2 (03:58):
We're here to share everything your CPA wants you to
know.

Speaker 1 (04:02):
In a fun and easy to understand way.

Speaker 2 (04:05):
Let's get started.

Speaker 1 (04:07):
Let's do it.
Hello, today you have just mefor a little bit of a different
episode than what we typicallydo, so I am going to actually
walk you through filing your BOIreport if you have not done
that report yet.

(04:28):
So if you haven't heard aboutthis report and I'm actually
surprised by the number ofpeople who still have not heard
about it because the penaltiesfor not filing are so severe
Hopefully you have heard aboutit, but you have plenty of time
and that's what this episode isall about.

(04:49):
The BOI report is for any LLC.
So if you filed an LLC withyour state, this BOI report,
which stands for BeneficialOwnership Information Reporting
it is just a new report createdby the federal government that

(05:09):
all LLCs need to file.
So a couple things to know here.
One, it's a brand new report.
You've never filed this.
Even if you've had an LLC for20 years, you've never had to
file this.
So this is new.
Two, generally, states onlyreport certain LLC requirements
to the state because you setyour LLC up with a state.

(05:32):
So this is a new thing wherethey're gathering information
for all the LLCs.
I'm not going to go into why wethink they're doing this or
what they're stating.
It's for just the fact that youneed to file it, and it has to
be filed by December 31st.
So this is very time sensitive.
The other thing to know is thatthere are severe penalties with

(05:55):
this new filing if you don'tfile.
So it's thousands of dollars ifyou miss this filing.
I don't know how they're goingto assess that how quickly,
anything like that.
This is all new, but they dostate that the non-filing
penalties will be very high.
Another thing to note is thatyou should not have to file this

(06:15):
yearly.
Thankfully, this is just aone-time filing.
The only thing you would needto do is go in and file an
update if anything with theownership changes.
So if you change owners orsomething like that, you could
go in there and file an update.
But, as for now, all LLCs thatwere established before 2024

(06:40):
need to file their BOI report bythe end of 2024, so that you
don't get those penalties.
Now your CPA can do this foryou.
We've had a lot of clients wantus to do the report, but I'm
telling you that is very simple.
If you can just sit down and gothrough this episode, so listen
to the episode while you'redoing the report, it'll be super

(07:03):
simple for you to do.
What you're going to need is adriver's license for every
single owner.
Also, if you have a singlemember LLC in a state that's a
community property state, likeTexas, for instance, then you'll
also be needing the driver'slicense for the spouse.

(07:23):
Because it's a communityproperty state, they are
requiring that the spouse alsobe included as a beneficial
owner, even if they're notlisted on the LLC paperwork.
So, step one, you're going tomake sure you have those
driver's license and then you'regoing to get on your computer
and go to finsongov.

(07:45):
That's f-i-n-c-e-n dot g-o-v.
Want to go to any of thewebsites that pop up that are
like spam websites.
You always want to make surethat you're going to the one
that ends in GOV when you'redoing filings.
Whenever I pull this up,there's so many like scams that

(08:06):
come up, so I always just tellclients to make sure you're
going to the gov website.
So you're going to go tofinsongov and then you'll
navigate to the BOI.
So it's finsongov, slash BOI.
Once you're there, you're goingto see a screen that says
beneficial ownership informationand you can either go to the

(08:34):
blue box that says prepare orfile.
So you want to click on file areport using the BOI e-filing
system.
Then you'll come to a page thatsays welcome to the BOI
e-filing system and then there'stwo little buttons that say get
started and the BSA e-filingsystem.
You want to click under thebeneficial ownership information

(08:55):
reporting.
Click get started.
Then you're going to scrolldown.
There's three little boxes.
You want to go to the fileonline BOIR and click the button
that says prepare and submitBOIR.
This is saying that you want todo it online.
You don't want to mail in apaper copy of the BOI.

(09:17):
Then there's a warning thatpops up.
You're entering US governmentinformation and it's going to be
monitored while you're using it.
All of that.
Just click agree on that button.
Okay, so this is where you'regoing to actually start the
filing.
So page one is pretty simple.
You're just going to clickinitial filing, so you wouldn't

(09:39):
click anything else unlessyou're actually updating it, and
I would assume anyone listeningto this is only filing their
initial report.
So, type of filing click A forinitial report and then you're
going to click next.
Now this is the part on partone, reporting company
information, that people aregetting confused.
You do not need to request toreceive a FinCEN ID.

(10:05):
You can just skip over thatpart.
You're going to go to the firstnumber, number five, that has
the star by it, meaning you haveto put in that information.
So you're going to put in thecompany legal name.
So what did you file the LLCname as.
Put that in there.
And then you have to scrolldown to number seven, which is
the next number with the starbeside it, and you're going to

(10:28):
put the tax identificationnumber in here.
So on this you can either usean EIN, if your LLC has an EIN
so if you're a partnership or anS-corp, anything like that,
that requires an EIN, you wouldhave that or even if you're a
sole proprietor and you did getan EIN, but if you do not have

(10:48):
an EIN, you can also use yoursocial security number, which
would be for soleproprietorships.
So that would be number seven.
Click which type you're usingand, number eight, put in that
number in the tax identificationnumber.
And then you're going to scrolldown to the country of
formation the United States andkeep scrolling to number 11.

(11:11):
That's where you're going toput in the address, city, state
and zip code of the LLC.
So that first page is prettysimple, just putting in the name
of the LLC, the type of taxidentification number you use in
EIN or social security number,and the address.
Then you're going to click next.

(11:33):
This is another tricky part ofthe VOI, tricky part of the BOI.
And if you had an LLC before2024, so this only applies to
LLCs that were formed beforeJanuary 1st of 2024.
So if that doesn't apply to youand you had a new LLC this year

(11:53):
, then you have a different duedate.
You still need to file thisreport, but your report is due
sooner.
So this applies to all of theold LLCs before they made this.
So that means you're gonna have.
So that means you are anexisting reporting company.
So you can see on number 16,right after it says existing

(12:14):
reporting company that you needto check if you're existing
reporting company as of January1st 2024.
So, like I said, if you haveyour LLC established before 2024
, you're going to be clickingthat box.
So you want to click box number16.
And then a box will pop up thatsays attention, this page will
be disabled.

(12:35):
If you are an existing company,you're going to say yes.
What that does is it doesn'tmake you fill in the company
applicant.
So you're going to skip to thenext tab because all of that
will be grayed out where youcan't type anything in, and
you're going to go to thebeneficial owner information,
part three tab.

(12:56):
So on this it's really simple.
So you're just going to fill inall the blocks where there's a
star.
You're going to scroll down tonumber 38, where you start with
the last name first name, dateof birth, address and then at
the bottom of the page you'regoing to put in that identifying
document so it can be apassport or the driver's license

(13:22):
.
So if you don't have thedriver's license, like I
mentioned before, you can use apassport.
So you can put in the ID typeon 4849.
You're going to put in thatnumber, the document number for
the ID, and then put in theaddress that's listed on there.
So fill all of that in and then, on number 51, you're going to

(13:44):
upload the image of that ID.
So if you have a driver'slicense or the passport, you
need an image in there.
So once you upload that, if youneed to add another beneficial
owner which I had to do a lotyou have to scroll to the top of
that page and click addbeneficial owner.
Then it will pop to a next boxthat says beneficial owner

(14:07):
number two.
So however many owners you needto add on there, that's the way
you do it, because if you moveon to the next page and click
next, it's not going to let youadd a beneficial owner.
The good thing is at the bottomof the screen you can go
between pages, clicking next orprevious, pretty easily and it
doesn't mess anything up.

(14:27):
So their system is pretty goodon that.
So once you have all of yourbeneficial owner information in
there for each owner and thenyou have everything uploaded for
the documents for their IDs,you want to go next at the
bottom of the screen, which willtake you to the submit page,
and then scroll up to the top ofthe submit page so that you can

(14:48):
see where you need to put inyour email, your first name,
your last name, and then youhave to click agree.
So once you do that, it's goingto have a little place where
you have to confirm that you'rehuman and once you do that, you
click submit B-O-I-R.
So it's going to take you to alanding page that says wait

(15:09):
right here, make sure that thisprocesses.
Once it does, it's going togive you the option to download
your transcript.
So make sure that you downloadthat so that you have a copy of
your BOI that you submitted andconfirmation that you did.
You should also get an emailwith this information.
Just make sure you save that incase you need it.
So it doesn't take too long tofill this out and it's pretty

(15:32):
easy.
So I just wanted to walk youthrough it.
This will be a good episodethat we can also send our
clients who haven't filed yet.
But you have about a month toget that filed.
Make sure you do that.
Hopefully, this was helpful.
I think a lot of people arescared to do this filing
themselves, but it's really asimple filing and if you enjoyed
this episode, please, please,please share it with a friend,

(15:55):
share it on your social media orplease send us a message, a DM,
telling us what you liked aboutit.
We really love to get feedbackon the episodes and until next
time.
Thank you so much for listeningto what your CPA Wants you to
Know.
Podcast.
Bye.
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