Have you filed your beneficial ownership information reports yet? Are you starting a new company and have heard the term “BOI reports” bandied about and don’t quite understand all that that entails?

Here, we’ll answer some of the most commonly asked questions about BOI reports. For more information about beneficial ownership information and how that can be integrated into your compliance and risk management processes, the CPAs here at Golub, Senitt, Rosenberg & Co are here to help. 

What Is Beneficial Ownership Information?

Beneficial ownership information is identifying information about the people who either directly or indirectly own or control a company. 

This can include those with significant ownership stakes in a company, those who have significant control over decision-making, or a combination of the two. People with substantial control can include: senior officers, people with the authority to appoint or remove certain officers or directors of the company, people who are important decision-makers in or for the company, and people with any other form of substantial control over the company, such as someone with influence over important decisions. 

Essentially, beneficial ownership information identifies the real people behind a business, even if they aren’t the legal owner on paper.

What Information About Beneficial Owners Must Be Reported?

Reporting companies must provide the following information about all beneficial owners in their BOI reports:

• Legal name
• Date of birth
• Residence address
• Identifying number and issuing jurisdictions from driver’s licenses, passports, or other such authorized documents
• Image of the document the number is from

When Is This Report Due?

Reporting companies created or registered prior to January 1, 2024 must file by January 1, 2025. 

Reporting companies created or registered after January 1, 2024 must file within 90 days of receiving actual or public notice of formation or registration. 

Reporting companies created or registered on or after January 1, 2025 must file their initial report within 30 days of receiving actual or public notice or formation or registration. 

Why Do Companies Have To Report This?

The reason why companies have to report beneficial ownership information is in order to combat money laundering and other illicit activities. Reporting beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) is part of the Corporate Transparency Act. 

Law enforcement and financial institutions use this information in order to identify potential risks with a company, such as when individuals may try to hide true ownership through shell companies in order to partake in money laundering schemes. Without access to beneficial ownership information, it can be challenging and time-consuming to identify patterns of risk. 

Thus, BOI reports are part of basic due diligence and typically are regulator requirements. It is part of risk management and compliance with laws on sanctions, fraud, money laundering, and terrorist financing. 

Who Has To Report Beneficial Ownership Information?

FinCEN BOI rules apply to the following two types of reporting companies:

• Domestic reporting companies. These include corporations, limited liability companies, and other entities created through filing a document with a secretary of state or similar US office.
• Foreign reporting companies. These include corporations, limited liability companies, and other entities that were formed under the law of a foreign country that register to do business in the United States through filing a document with a secretary of state or similar US offices.

Are Any Companies Exempt From Having To Report?

Yes, there are some companies that are exempt from having to file BOI reports. These include some nonprofits, publicly traded companies that meet specified requirements, certain large operating companies, and more. However, this reporting obligation applies to millions of businesses in the US or that operate in the US. 

CPA Services In And Around Glendale, CA

Golub, Senitt, Rosenberg & Co provides the full suite of CPA services in and around Glendale, CA. Whether you need help with your BOI reports, tax planning, fractional CFO services, or another type of accounting service, please don’t hesitate to contact us today. We are here to help you, however we can. 

Are your finances getting to be too much to handle, but your business isn’t big enough yet to justify hiring a full-time CFO? Did your CFO resign and you need an interim CFO during the hiring process for a replacement? 

If the answer to these questions is yes, it might be time to hire a fractional CFO. Here, we’ll go over what fractional CFOs do, how to know when to hire one, and some key benefits you can experience when you work with a fractional CFO. Let’s get into it.

What Does A Fractional CFO Do?

CFOs, both full-time and fractional, look to the future of your business. While full-time CFOs are a permanent part of the company, you would hire a fractional CFO for a certain period of time or for a project in order to assist with specific financial needs. Also known as outsourced or part-time CFOs, fractional CFOs are financial professionals who provide high-level financial management and strategic guidance to a company. 

Some of the things fractional CFOs do include: 

• Improving cash-flow
• Enhancing financial systems
• Improving growth and profitability strategies
• Assistance with mergers and acquisitions
• Recommending new software to improve financial systems
• And more.

Why Hire A Fractional CFO?

When you hire a fractional CFO, you get to enjoy the benefits of a CFO’s services, at a fraction of the cost of hiring a full-time CFO. This is beneficial to small businesses who may not have the resources to hire a full-time CFO, as well as to bigger companies who need someone to step into this role during a transition period while conducting the hiring process for someone permanent. 

The reason for this is because as business growth accelerates, financial teams may struggle to keep up with the business’s needs or not know how to negotiate terms and other such complexities. A fractional CFO sees to strategic planning and analysis, negotiation, and cross-functional work to ensure that nothing falls to the wayside. They understand how to ensure that your business is operating according to the demands of the CEO, the board, and the investors. 

Signs It’s Time To Hire A Fractional CFO

Many companies don’t start out with a financial team in place. This typically comes with growth. As your company grows, so does the need for a financial professional on your side, which is when you’re start thinking about whether it’s time to hire a fractional CFO.

Fractional CFOs help you model your business to be future-proof. They’re your partner, who help you strategize and avoid any financial pitfalls that could endanger your company. 

Some signs you should start thinking about whether to hire a fractional CFO include:

• You need financial leadership.
• Your business is growing quickly.
• Your business is expanding into new markets.
• Your business is making money, but not profit.
• Your business needs to fundraise.
• You’re not confident in your books.
• Month-end close is taking too much time.
• You need to reconcile a lot of accounts. 
• And more.

If you’re asking yourself if your business need to hire a fractional CFO, the answer is likely yes. You can schedule a consultation with a fractional CFO firm in order to best determine your needs.

As your business continues to grow, you may eventually need to hire a full-time CFO, as the roles and responsibilities you need filled exceed the time constraints of an outsourced, part-time professional. Your fractional CFO will let you know when it’s time to start thinking about implementing a full-time financial executive instead of utilizing their services. 

Key Benefits Of Working With A Fractional CFO

#1. Expertise

Fractional CFOs are seasoned professionals who have a breadth of expertise across industries. As they usually work with multiple clients simultaneously, they have more ongoing experience to pull from when advising and leading your organization.

#2. Cost-Savings

Fractional CFOs bring all the experience of a full-time CFO, instantly saving you the cost of hiring a permanent professional. They also allow you to bypass expenses associated with hiring someone in your company itself, such as payroll taxes and other such employment expenses. 

#3. Flexibility

Your fractional CFO’s work can be to your business’s needs. You can ask for increased support during critical periods and then revert back to a more consistent level when evened out.

#4. Objectivity

As a fractional CFO is someone you hire, rather than someone who has a stake in your company, you can count on them for objectivity. This can not only improve business outcomes, but also reduce business owner stress, as they can trust unvarnished advice based on experience, rather than advocacy for specific strategies. 

Do You Need To Hire A Fractional CFO?

Golub, Senitt, Rosenberg & Co provides fractional CFO services, controllership services, and the full suite of CPA services in order to fulfill the needs of growing businesses in and around Glendale, CA. We focus on fostering long-term relationships with our clients, looking towards your financial future, in addition to helping you with backwards-facing needs, like taxes and audits.

To learn more about the services we provide and what we can do for you as a fractional CFO, please don’t hesitate to contact us today. 

Tax credits are an amount that you can subtract from the taxes you owe which can either lower how much you owe or increase your refund. There are tax credits for energy efficiency and clean energy to encourage a greener planet. However, in spite of how many tax credits there are, it can be challenging finding ones you are eligible for and determining whether or not you actually meet the requirements.

With the upswing in clean vehicles and the Clean Vehicle Tax Credits, many wonder which electric vehicles meet the requirements and whether or not there are other specifications they should be aware of. Here is some more information about the Clean Vehicle Tax Credits and some of the requirements you must meet to qualify for it.

What Is The Clean Vehicle Tax Credit?

All-electric, plug-in hybrid, and fuel cell electric vehicles may be eligible for a federal income tax credit. Taxpayers who purchase an eligible vehicle may be able to qualify for a tax credit up to $7500 for vehicles purchased new in 2023 or after. Qualified vehicles purchased prior to 2023 may be eligible for a similar credit. Pre-owned vehicles purchased in 2023 or prior may be eligible for a credit up to $4000. 

There is also a Commercial Clean Vehicle Credit for businesses and non-profit organizations. 

The Clean Vehicle Tax Credits Requirements

The Inflation Reduction Act in 2022 changed the existing credit for electric vehicles to require final assembly in North America. 

The IRS states that: “If you take possession of a new clean vehicle on or after April 18, 2023, it must meet critical mineral and battery component requirements to qualify for the credit.” This is applicable to vehicles purchased prior to April 18, 2023, as well.

Some general requirements include:

• The vehicle must be made by a qualified manufacturer (exception for fuel cell vehicles – more information here.)
• It must have a gross vehicle weight rating less than 14,000 lbs.
• It must have a battery capacity of at least 7 kilowatt hrs. 
• It must undergo final assembly in North America.
• The MSRP (manufacturer suggested retail price) cannot exceed $80,000 for pickup trucks, sport utility vehicles, and vans or $55,000 for other vehicles. 

Additionally, the sale will only qualify if you buy the vehicle new and if required information is reported by the seller to both you and the IRS at the time of sale. From January 1, 2024 onward, the dealer must be registered with the IRS Energy Credits Online and the vehicle must be approved through this at the time of sale. 

Other requirements apply, such as adjusted gross income caps.

What Vehicles Quality For The Credit?

The IRS has compiled a listing of vehicles that qualify for the electric vehicle tax credit that also notes the amount of the qualifying credit. This list can be found on the IRS website here: Qualified Clean Vehicles. 

You can also search your car’s VIN number on the Department of Energy’s fuel economy website to see if your vehicle’s final assembly was completed in North America, a component of qualifying for this credit. You can do this by following this link: Electric Vehicles with Final Assembly in North America. 

Some of the vehicles that may qualify include:

• 2024 Cadillac LYRIQ
• 2024 Ford F-150 Lightning
• 2024 Tesla Model 3 Performance
• 2024 Honda Prologue
• 2023 Chevrolet Bolt EUV
• 2023 Jeep Wrangler PHEV 4xe
• 2023 Volkswagen ID.4 AWD PRO
• 2022 Chrysler Pacifica PHEV

For pre-owned vehicles purchased on or after January 1, 2023, you can see if your vehicle may apply for a credit up to $4000 by using the Department of Energy’s fuel economy table found here: Pre-owned Plug-in Electric and Fuel Cell Vehicles.

Not every version of the models will qualify. For any eligibility questions that you may have, you can contact your vehicle’s manufacturer or reference information, such as this Frequently Asked Questions document from the IRS. Their Clean Energy and Vehicle Credits section provides in-depth information about all requirements and updates. 

Is There A Catch?

If you qualify for this tax credit, it is only available as a non-refundable tax credit. Thus, you can’t get more money than you owe in taxes. 

How Do You Claim The Credit?

In order to claim this credit, you will need your vehicle’s VIN and to file Form 8936 (Qualified Plug-in Electric Drive Motor Vehicle Credit) with your tax return. 

As of 2024, the credit may also be claimed at the time of purchase. The credit is signed over to an IRS-registered dealer, who then applies the credit amount to the cost of the vehicle, reducing the vehicle’s price on the spot. 

Do You Need Help Finding Tax Credits You’re Eligible For?

The certified public accountants here at Golub, Senitt, Rosenberg & Co help our clients reduce their tax liability through methods that include helping you find all of the tax credits and deductions that you are eligible for. We don’t just help prepare business and personal tax returns during tax season – we can also help you plan for taxes all year round, to help you pay the lowest taxes legally possible.

From tax preparation to tax risk consulting, tax retirement planning, and the full gambit of CPA services, count on us for accurate, high-quality work you can trust time and time again. Contact us today to learn more about our CPA services for those in and around Glendale, CA.