Reversed again, deemed unconstitutional and not required...for now at least. Will be interesting to see how this plays out at the end. They are trying to use this as a way to prevent money laundering and such, but the people doing that will definitely find a way around this pretty easily. It'll just be another time waster for law abiding business owners if it does remain compulsory
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Beneficial Ownership Filing.
- Thread starter Earl Weiss
- Start date
Earl Weiss
Well-known member
https://www.nfib.com/news-article/f...ial-ownership-reporting-for-small-businesses/ Injunction reinstated as of 12/27/2024.
I said what the heck and filled mine out today. What a waste of time and government resources/money. There is nothing there that the feds couldn't have got from my LLC documents I filed at my secretary of state's office except for my photo ID. It took me 10 minutes per LLC.
Earl Weiss
Well-known member
Does your state require the EIN for the LLC to set it up. Illinois does not. Illinois also dos not need info for members to set the LLC- Only Manager info and both of those could change over time.
No, so I guess you have a point there, and I did use my social security # on one entity . But still, it seems the government has the info they need if they wanted to figure it out themselves.
Earl Weiss
Well-known member
Therein lies another issue. Some accountants say this is OK for a "One Man Band" and it works for accounting. Unfortunately there is a theory called "Piercing the Veil" where someone seeks to impose liability on member(s) claiming lack of separateness and using the individual's social opens the door for this. When i asked an accountant who was suggesting this about piercing the veil issues their reply was "ok yeah....."
Waxman
Super Moderator
it's always been my understanding that the corporation is a separate entity. The purpose of incorporating is Limited liability and tax benefits. It has always been my understanding that in order to remain a corporation in good standing, the corporation must complete the proper documentation such as annual meetings, Etc. This is easily accomplished and is some thing that companies that elect the corporate status must comply with.
Roz
Well-known member
Don’t over think the data. If you read about the latest hack of the US Treasury database I assure you that the dark web and Chinese already have all your data and then some. No more secrets given all the possible ways for a hack to happen without a company or institution realizing it for a long time. Should not be a big deal to complete the form. Does seem like a new likely target for a future hack. What will be interesting to see how handled are the massive number of LLCs created and never used, or simply abandoned over time.
Earl Weiss
Well-known member
Exemption # 23 inactive entity. https://www.fincen.gov/boi-faqs#C_2
Roz
Well-known member
Thank you for posting. Wow are there a lot of exemptions or considerations to navigate. Need an accountant and lawyer to figure them out. Just easier to complete the form as it really is not a big deal. I suspect they are just trying to put real names to the various shell companies that own other shell companies that own even more shell companies so the trail stops eventually at a real person. A good use of AI once the db is filled with the info.
My beef is the federal government is requesting this simple info from us under threat of tens of thousands of dollars in fines per year of non compliance. But a free person search website knew all my addresses and phone numbers for the past 35 years. They even knew the name of my 1st wife that I divorced around 1991.
They say that AI will reduce the size of white collar and desk jobs substantially, to the tune of 50%, and that website demonstrates how easy it is to gather info from a general government records search done automatically, but the government database with all their powers apparently can't do something much easier to accomplish.
Still, it's over and done with. Thanks Earl for the heads up, it's likely I would have not recognized that filing this was a necessity. My accountant did send out a mass email but in all honesty I would have likely ignored it.
They say that AI will reduce the size of white collar and desk jobs substantially, to the tune of 50%, and that website demonstrates how easy it is to gather info from a general government records search done automatically, but the government database with all their powers apparently can't do something much easier to accomplish.
Still, it's over and done with. Thanks Earl for the heads up, it's likely I would have not recognized that filing this was a necessity. My accountant did send out a mass email but in all honesty I would have likely ignored it.
my concern is what if im a small business owner who aren't in communities like this? i would have never known, and then im liable to get fine for something that wasn't even rolled out in a manner that is deserving of such attention. way to help the small businesses, the backbone of american econmics.
Earl Weiss
Well-known member
Had some accountants send out e-mail offering their services to get it done as well. Do you have an accountant?
OurTown
Well-known member
Buckeye Hydro
Active member
Same here
Earl Weiss
Well-known member
Exactly the issue - like being your on plumber - great concept until your house is filling up with water.
eckert16
Active member
Supreme Court opinion on CTA
It is not that long of a read.
It is not that long of a read.
