Beneficial Ownership: What It Is and Why It Matters
If your business is structured as an LLC or corporation, there’s a new compliance rule you need to know. It’s called Beneficial Ownership Reporting, and it’s designed to increase transparency and reduce fraud.
What’s Required?
Under the Corporate Transparency Act, most small businesses must report:
Full legal name
Date of birth
Residential or business address
A unique ID number (like a driver’s license)
This applies to anyone who owns or controls 25% or more of the business.
Who’s Exempt?
Sole proprietors
Nonprofits
Publicly traded companies
If you’re not exempt, you’ll need to file a Beneficial Ownership Information Report (BOIR). The deadline has shifted a few times, but it’s best to prep now.
Why It Matters
Failing to file can result in penalties. But more importantly, this rule helps protect your business from fraud and builds trust with clients and partners.
What You Can Do
Review your structure: Are you an LLC or a corporation?
Identify your owners: Who meets the 25% threshold?
Gather ID info: Make sure it’s current and accurate
Final Thoughts
This isn’t just a paperwork exercise; it’s an opportunity to demonstrate that your business is built on integrity. Help your audience understand the rule with a clear and concise guide or checklist.
Source: ARF Financial: 2025 Tax Law Changes
Legal Disclosure:
CompliantHer™ program of (Relannford Enterprises LLC) is not a law firm. This document is intended for educational and informational purposes only and does not provide medical, legal, or financial advice. If you have questions about your specific situation, please consult a physician, attorney, or accountant licensed to practice in your state and/or country.
Affiliate Disclosure:
Some of the links in this course are affiliate links, which means that at no additional cost to you, CompliantHer™ (Relannford Enterprises LLC) may earn a commission if you decide to make a purchase after clicking through the link.
