When you sell any goods or services for a profit, even if you don’t have a business entity, you are considered to be a business owner, according to the IRS. As a business, you are required to keep track of the income that you make and any eligible expenses that you spend.
If you started your business entity in 2024, you have to file a Business Owner’s Information (BOI) report with FinCen within 90 days. If you don’t file this report by your due date, you could be subject to fines of $500/per day, not to exceed $10,000. If you filed your business entity prior to 2024, you have until January 1, 2025, to file your report.
An S-Corp is not a business entity. It’s actually a tax strategy that business owners use to ‘upgrade’ their business entity in order to save money on self-employment taxes, which is 15.3%.
If you file too early and receive tax forms after you have already submitted your tax return, you will have to amend your return. If you don’t amend your tax return, you may receive a letter from the IRS of a balance due as a result of the missing information.