New business reporting requirement

I appreciate your posting @Ischgl99 ! My wife, and her sisters have a tiny S-Corp that apparently needs to file. I see that the very entities that deserve scrutiny are exempt from this law. (Edited by mods: no politics)

This requirement, which has apparently gone into effect without any notification requirements sure provides an easy way to get shut down...

Thanks again,

GsT
 
Last edited by a moderator:
I wonder what constitutes a "business"?
Are Etsy people obligated, for example?
I (might) do a small amount of selling on Ebay and a couple side hustles that aren't big money.
I also have a business registration in my state but there's no activity (yet)
 
GeneT45 said:
I appreciate your posting @Ischgl99 ! My wife, and her sisters have a tiny S-Corp that apparently needs to file. I see that the very entities that deserve scrutiny are exempt from this law. Must be nice to own your own Senator.

This requirement, which has apparently gone into effect without any notification requirements sure provides an easy way to get shut down...

Thanks again,

GsT
Click to expand...
You’re welcome! That was my initial thought too, but banks and financial organizations have a lot of regulation already, so maybe they already know who owns/has controlling interest in them and decided they didn’t need to do this.

Inferno said:
I wonder what constitutes a "business"?
Are Etsy people obligated, for example?
I (might) do a small amount of selling on Ebay and a couple side hustles that aren't big money.
I also have a business registration in my state but there's no activity (yet)
Click to expand...
From what I read on their website, it sounds like anyone that had to register their business with your state’s secretary of state is required to file this. In my state, that would be any corporation or LLC that does not meet one of the listed exemptions. Here in CT, a sole proprietor registers with the town clerk, but I see business listings on the secretary of state’s website of companies in the state that appear to be sole proprietors, so not sure if that would be considered registered with the SoS in your state. I think it is prudent that if you are unsure, give an attorney experienced with business law a call and pay for a phone consultation, that’s probably cheaper than one day of fines!
 
So, if your business was created before Jan 1 2024 you have until the end of this year. The law passed in 2021 and I'm just finding out now because of a considerate machinist. I file a schedule "C", I would think I should have gotten an email or something as a heads-up from Treasury. Ok. So I filed and am done. No big deal. According to the web site you only need to do it once unless there are changes to your business. Maybe if I had a "tax guy" they would have told me?

According to the website:
"FinCEN is working hard to ensure that reporting companies are aware of their obligations to report, update, and correct beneficial ownership information. " Yup.
 
Reddinr said:
So, if your business was created before Jan 1 2024 you have until the end of this year. The law passed in 2021 and I'm just finding out now because of a considerate machinist. I file a schedule "C", I would think I should have gotten an email or something as a heads-up from Treasury. Ok. So I filed and am done. No big deal. According to the web site you only need to do it once unless there are changes to your business. Maybe if I had a "tax guy" they would have told me?

According to the website:
"FinCEN is working hard to ensure that reporting companies are aware of their obligations to report, update, and correct beneficial ownership information. " Yup.
Click to expand...
Pretty screwed up isn't it? What you wrote is my understanding as well, easy to do, but they have to do better.

I do my own taxes, so don't have an accountant to inform me. I mentioned this to my business networking group and nobody there had heard about this either. One lady in the group contacted her accountant and she hadn't heard about it either. My colleague got an email from her attorney a few days later telling her to make sure she files. I contacted a friend of mine that is an accountant in another state and he said this is a big deal in the accounting world and is surprised my colleague's accountant still hadn't heard about it.
 
My accountant friend mentioned they are figuring out the details and which clients need to file, so maybe your wife’s accountant is doing the same and will contact her in the near future. Hopefully hers isn’t like my colleague’s accountant and never heard of it.
 
You must log in or register to reply here.
Back
Top