Instructor Businesses: New Federal Report Required in 2024

[Craig_AR]

If you run your instructor business as a corporation, a Limited Liability Company (LLC), or any form of business registered with your state's secretary of state (not U.S.), as of Jan 1, 2024, we have a new requirement to tell the Feds' Financial Crimes Enforcement Network about the company and who, in particular, manages and benefits from the company's activities. We have until Jan 1 2025 to file. I received an email on this last week and filed yesterday.

See the web site Beneficial Ownership Information Reporting | FinCEN.gov.

It seems this new registration requirement comes from a 2021 law aimed at transparency in business activities. The idea is to un-hide folks who play games with LLCs to hide financial activity.
It costs nothing to register, and it appears we only have to re-register when tehre are changes in ownership or benefited individuals.

 

[Ohen Cepel]

Not familiar with this and am not a business guy, so please excuse my ignorance. Is this an instructor/firearms thing or a thing aimed at LLC's and corporations, regardless of their type of business?

 

[Craig_AR]

Is this an instructor/firearms thing or a thing aimed at LLC's and corporations, regardless of their type of business?

It is aimed at every type of business, except a list of exempt ones which are mainly financial service and brokerage businesses. It is not aimed at firearms businesses. While I addreseed it here for instructors, if you have an LLC for HVAC or woodworking or carpet cleaning, your business is under the new requirement, too.
Sorry for not being clear enough. Good of you to clarify here.