Reminder: Renew Your Business Registrations

Minnesota Secretary of State: Due December 31
Any registered business needs to file a renewal once a year. If you have an LLC, Corporation or Assumed Name, please log into the MN Sec of State website and do the following:

• Click New Business, Amendment, Annual Renewal or Reinstatement,
• Search for your business name,
• Click to see details.
• Renewal Due Date:
  • If renewal due date says 12/31/2023,
    • Click "File Amendment/Renewal".
  • If company is inactive, you'll need to pay a fee and file Reinstatement

New FinCEN Requirement for Companies in 2024
Starting in 2024, if you have an LLC or Corporation (even with just one owner), there is a new requirement to register your "Beneficial Ownership Information" (BOI) annually with FinCEN (Financial Crimes Enforcement Network). The name is kind of scary looking brandished across the top of the website, but don't worry. Their goal is to fight money laundering and give transparency to who owns/controls shell companies (not usually the purview of Fox Tax clients, but the new registration applies nonetheless). 

There are a ton of details in the FAQ online here. Below is a quick summary:

Who Has to Report:

• Domestic corporations, LLCs, and other entities created by filing with a state
• Foreign entities that register to do business in the U.S.
• Some entities are exempt (e.g. publicly traded companies, banks, non-profits)

What Information Must Be Reported:

• Information about the reporting entity
• Name, birthdate, address, and ID number/image for each beneficial owner
  • Beneficial owners are those with >25% ownership or substantial control
• For entities created after 1/1/2024, info must also be reported on "company applicants"

When Reports Are Due:

• Entities created before 1/1/2024 -> initial report due 1/1/2025
• Entities created after 1/1/2024 -> initial report due 90 days from formation
• Entities created after 1/1/2025 -> initial report due 30 days from formation
• Changes trigger updated report within 30 days
• Inaccuracies trigger corrected report within 30 days

Although this is NOT a tax issue, it IS a new annual requirement with potential penalties if you don't comply. NOTE: Fox Tax will not be filing this report for clients as it is not under IRS jurisdiction; we are being advised by our insurance company that this could be construed as "Unauthorized Practice of Law" vs. an accounting matter. Luckily, FinCEN's own FAQ is suggesting companies can file without the aide of a lawyer by logging into their website and keeping company ownership details up to date.

We just wanted to remind you of the requirement so you can put it on your recurring calendar towards the end of each year (along with the Secretary of State Renewal).

We hope you had a great 2023 and look forward to talking taxes with you soon!

Your Fox Tax Team