Financial Reporting

[somarco]

Rules for small businesses changed as of 1/1/2024 and almost every business structure must now comply with reporting rules.


Beginning January 1, 2024, most small entities—including single member LLCs—must file online reports with the federal government, disclosing information about the beneficial owners of the entities. This new reporting requirement—estimated to impact at least 32.6 million entities in 2024—was created by the Corporate Transparency Act (CTA). Existing entities will have until January 1, 2025, to make their first beneficial ownership information (BOI) report. Entities first created or registered in 2024 will have 90 days from creation to get their first reports filed. Any entity that has already filed a report will generally have 30 days to make updates required by the CTA.



Among the business structures affected include but are not limited to . . . LLC, SMLLC, LP, S Corp, C Corp

Ask your CPA/accountant for more information.

 

[somarco]

Ties to AML and other suspected criminal activity.

https://home.treasury.gov/news/press-releases/jy2015

FinCEN Beneficial Ownership Information | Georgia Secretary of State

The Corporate Transparency Act (“CTA”) was enacted by the United States Congress on January 1, 2021, as part of the National Defense Authorization Act. The CTA includes significant reforms to anti-money laundering laws and is intended to help prevent and combat money laundering, terrorist...

sos.ga.gov

 

[Yethi Consulting]

Financial reporting entails the systematic communication of a company's financial performance and position to stakeholders, including investors, creditors, and regulatory bodies. It involves compiling, analyzing, and presenting financial information in accordance with relevant accounting standards and regulatory requirements. Key components include balance sheets, income statements, cash flow statements, and disclosures. Effective financial reporting enables stakeholders to make informed decisions about investing, lending, and managing risks associated with the entity. Transparency, accuracy, and timeliness are crucial for maintaining trust and confidence in financial markets. Adhering to best practices in financial reporting ensures accountability, facilitates comparison with industry peers, and supports sustainable business growth.

 

[somarco]

Nice AI summation but has nothing to do with the new FinCen reporting requirements.

 

[walthamny]

There is no penalty for not reporting in 2024. The penalty starts next year, however if Trump is elected this regulation will likely get put on hold right away. Also accountants are exempt however law firms are not exempt from the regulation. I wonder how far something so discriminatory in application will make it through the Federal court system without getting overturned.