Running a small business means juggling numerous federal, state, and local compliance requirements, which can be overwhelming. At Gusto, we’re dedicated to being your trusted advisor, helping you navigate these complexities to stay compliant and avoid penalties. Our compliance solutions and tools are designed to support entrepreneurs and small business owners, and we’re excited to announce two feature updates:
- a simple and streamlined way to file Beneficial Ownership Information (BOI), and
- an enhanced state tax registration experience
Read on for more.
Streamlined Beneficial Ownership Information (BOI) Filing
Effective January 1, 2024, many small businesses in the US need to report information on their beneficial owners to the federal government under the Corporate Transparency Act (CTA). This Beneficial Ownership Information (BOI) Report is essential for increasing transparency and combating illicit activities like money laundering and drug trafficking.
Businesses must file their BOI report online through the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Many small businesses may not know where to start when it comes to meeting this requirement, which is where Gusto’s BOI filing solution comes in.
Most non-exempt U.S. businesses, including LLCs, corporations, and S-corporations, must comply with the CTA. Exemptions include businesses with over 20 U.S. employees and more than $5 million in U.S. gross receipts or sales. For a full list of exemptions, refer to FinCEN’s Small Entity Compliance Guide.
To comply, businesses must identify beneficial owners holding at least 25% ownership or exerting substantial control. Required details include full legal names, addresses, and government-issued IDs, along with company information like legal structure, principal business address, and tax ID number.
If your business was created or registered before January 1, 2024, you have until January 1, 2025, to report BOI. For businesses created or registered in 2024, BOI must be reported within 90 days of creation or registration. After January 1, 2025, the deadline is 30 days from creation or registration. BOI reporting is a one-time requirement unless updates or corrections are needed.
Gusto is developing a solution to simplify the BOI filing process for our customers, set to launch by the end of 2024. Our tool will help ensure accurate and timely compliance, easing the burden and avoiding penalties so you can file with confidence. Stay tuned for more updates on our BOI filing solution.
Enhanced State Tax Registration Experience
State tax registration can be a complex task for small businesses, especially as you hire employees and independent contractors across multiple states. Each state has its own payroll rules, and failing to register new employees properly can result in significant fines.
Gusto’s comprehensive solution for state tax registration across all 50 states simplifies and speeds up this multi-step process, which can often take days or weeks. Our system handles the necessary paperwork with state and local agencies, allowing you to focus on growing your business.
We’re continually enhancing our state tax registration process to make it even more seamless for our customers. Look out for exciting updates coming before the end of 2024. Whether you’re registering to pay an employee for the first time, or registering across multiple states to support a distributed workforce, Gusto can help make managing multi-state state tax registration and payroll efficient and stress-free, giving you peace of mind to concentrate on what matters most: your business growth. Please note, there is a fee associated with this service to ensure we provide you with the highest level of support and efficiency.
Stay connected for more information on these upcoming features and how they can benefit your business.
