New U.S. Law for all LLCs Could Cost Small Businesses $500 Per Day

Disclaimer: This article is for information purposes only. The AHS does not provide financial or legal advice to our members. Please consult your own tax and legal professionals for advice about your unique situation. 

Many harpists have registered their business with the Secretary of State (and paid the corresponding fees) to ensure they have Limited Liability protection for their personal assets in case something happens while giving a lesson or playing a gig.

For harpists who file a Schedule C on their personal taxes as an LLC, or have formed a Partnership/Corporation, a new U.S. law requiring businesses to file a Beneficial Ownership Information report (known as a BOI) may impact the business (most nonprofits are exempt). 

FinCEN (Financial Crimes Enforcement Network, a department within the U.S. Treasury) states that the federal government requires LLCs in existence as of January 1, 2024 to disclose the owners of the business by December 31, 2024. Any new LLCs formed in 2024 has 90 days to comply with this law. 

Once the LLC’s BOI is filed, no action is required unless there is a change in information (such as a new or renewed drivers’ license, a move, name change, etc.) Non-compliance penalties include a $500 fine per day per owner with additional possibilities of criminal penalties. 

Filing is easy and can be done online in about 20 minutes. A valid drivers’ license and SSN are required. To file, visit FinCEN’s BOI webpage,

For more information, please see the following websites: 

Last Modified: May 6th, 2024