Beneficial Ownership Information Report to be filed with FinCEN - who must file this report?

[Greta]

Does it apply to any Sch C clients? Or just 1065 or 1120 clients? Deadline is January 1, 2025.

[IRonMaN]

If the schedule C is a single member LLC, they need to file.

[judys3]

Only if they are an LLC, single member

[Greta]

Are you contacting all clients to tell them to send this report?

What about Sch E -- owners are often LLCs for liability protection.

The owners of 1065, 1020-S, Sch C, E are already visible, as per K-1s. So other than 1120-C, why is this being asked?

[Just-Lisa-Now-]

Anyone that had to register with their secretary of state when they formed their business entity, I believe some states DO require this of sole props, at least thats what they told me in the CEs I took last year.

[IRonMaN · Accepted solution]

"So other than 1120-C, why is this being asked?"

It is to aid the federal government in tracking down criminals.  If you have no criminal clients they don't have to file ..................... just kidding.  Everybody meeting the criteria needs to file or risk the potential of some substantial penalties if they "willfully" neglect to file.

[Greta]

Do you contact your clients so they file this Beneficial Ownership report?

[IRonMaN]

We are currently in the process of letting our clients know that it is out there.

[Greta]

I'm practicing filing the report for my company, an S-corp. Was swimming right along until they asked me to drag my driver license into my ID document question, and I don't know how to do that (:

[IRonMaN]

You need to scan a copy of your license and then you will have a pdf file to complete the process

[Terry53029]

Here is a link. https://www.fincen.gov/boi-faqs