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A NOTE FROM IAN
National Sales & Strategic Business Development Manager
Over the years, I have consistently communicated to our clients that Parasec occupies a unique position within our industry. We are neither too small nor too large; we are “just right.” At Parasec, our team of employee owners is well-equipped to manage business transactions of all sizes while upholding the personalized service and continuous customer support for which we are known.
There are no barriers between our front-line employees and our management team. It is not unusual to see our CEO (or any manager, for that matter) interacting with our team of employee owners. This direct communication allows our team to collaborate closely with our customers and our supervisors, managers, and C-suite. This open line of communication enables us to gain a better understanding of the day-to-day challenges our customers face, resulting in the ability to provide tailored business solutions to meet our client’s specific needs. It also empowers us to introduce new services that our clients truly need.
Our size provides us with the flexibility and agility to enhance existing features, address customer concerns, and actively listen to our customers. We engage with our customers, lend an ear to their experiences, and share their perspectives with one another. This approach helps us cultivate strong relationships with our clients, allowing us to become a trusted partner. This is a significant factor contributing to the long-term customer loyalty we observe here at Parasec.
Industry News
Alabama: Annual Report Requirement for Corporations Repealed
Effective October 1, 2024, Alabama corporations will no longer be required to file an annual report with the Secretary of State under House Bill 230 (Act No. 2024-213). Under the bill, no annual report will be due in 2025 and beyond. Previously, failure to file an annual report was grounds to revoke the corporation’s registration. Corporations will continue to have to register and pay taxes, as the bill only removes the need to file an annual report. Find the bill’s complete text here.
California: Senate Passes Beneficial Ownership Legislation
The California Senate recently passed SB 1201, which would require corporations and limited liability companies (LLCs) doing business in the state to publicly disclose information about their beneficial owners on their annual (corporations) or biennial (LLCs) statements of information (SOI). The bill would also authorize the Secretary of State to increase the SOI filing fees as needed to cover, but not exceed, the reasonable cost to manage regulatory activities imposed by the bill. If the bill is approved by the assembly and signed by the governor, it could take effect as early as January 1, 2026. Find more on the bill here.
Connecticut: Various Impact to Business Filings
Effective January 1, 2025, Senate Bill 428 will introduce several changes related to business registrations filed with the Connecticut Secretary of State. For starters, business entities must include a valid email address and a North American Industry Classification System (NAICS) code with certain filings. Additionally, foreign LLCs must deliver a certificate of existence (or document of similar import) from the jurisdiction of formation with a foreign registration certificate or name change amendment. Another notable change pertains to annual reports. Under the new legislation, if any information required in an annual report (except for the entity’s name) changes after it has filed its most current report and not later than thirty days preceding the month during which the next annual report becomes due, the entity must file an amended annual report. The bill also authorizes the Connecticut Secretary of State to require online filings and allow paper filings only if the filer establishes online submission is impractical. Furthermore, under SB 428 the Secretary of State must use email notifications to take certain actions such as administrative dissolution. To read the bill in its entirety, go here.
Kansas: Biennial Filing Requirement
Businesses operating in Kansas now have to submit an information report to the Kansas Secretary of State every two years instead of annually. The impetus for the change is to improve customer service by simplifying business filings and eliminating unnecessary filing requirements for business owners. Reports for companies established in even-numbered years will be due in even-numbered years, while those established in odd-numbered years will be due in odd-numbered years. The bill also allows reports for multiple limited liability entities to be submitted at once, as long as each report is filed in the first year.
Federal: BOI Reporting Requirements for Entities that have Ceased to Exist
The Financial Crimes Enforcement Network (FinCEN) has updated its FAQs section on beneficial ownership information to address inquiries about entities that are no longer active. We’ve had multiple clients ask about this, so we’re thankful that FinCEN is providing some clarity on the subject. Please take a look at the information here to see if it is applicable to your situation.
Federal: Misleading BOI Reporting Mailers
Unfortunately, we have observed a rise in misleading mailers targeting business owners who may need to comply with the Corporate Transparency Act (CTA). These companies use fear tactics and urgent language to pressure business owners into paying excessive fees for their beneficial ownership information report (BOIR) services. The recent mailers from two different companies featured QR codes and websites that were either inactive or triggered potential phishing warnings. If you receive any suspicious documentation, please contact our office at 800.533.7272 for assistance. Our team is familiar with these fraudulent schemes and can help verify the authenticity of any documents you receive. If you would like more information about Parasec’s BOIR services, please do not hesitate to contact us at BOI@parasec.com.
Service Spotlight
Federal Tax Identification Numbers/EINs
Parasec can assist your business in obtaining its Federal Employer Identification Number (EIN), also known as a federal tax identification number. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States. Federal EINs are necessary for various purposes, including reporting beneficial ownership information (BOI) to FinCEN, filing corporate taxes, opening a business bank account, applying for business licenses and permits, as well as meeting various employee needs such as hiring and payroll. Our team is knowledgeable about the IRS application process and requirements and can help ensure that your EIN application is completed accurately. We will file your EIN application directly with the IRS, manage the approval period, and send you the official documentation with your confirmed identification number. Ready to apply for your EIN? Reach out to our team at parasec@parasec.com.
Client Testimonial
“Everyone I work with at your organization goes above and beyond to help–always pleasant and immediately responsive. Thank you for the good work that all of you do!”
~ Julie S., Paralegal