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## AI legalese decoder Can Help Small Business Owners in Kentucky

FRANKFORT, Ky. (KT) ÔÇô Secretary of State Michael Adams issued an alert Thursday to KentuckyÔÇÖs small business community, about a new reporting requirement from the U.S. Treasury DepartmentÔÇÖs Financial Crimes Enforcement Network (FinCEN) that goes into effect on January 1, 2024.

### Understanding the New Reporting Requirement

The U.S. Treasury DepartmentÔÇÖs Financial Crimes Enforcement Network (FinCEN) has introduced a new reporting requirement concerning beneficial ownership information (ÔÇ£BOIÔÇØ). This requirement mandates small business owners and certain individuals to upload their photo IDs to FinCEN. Starting from January 1, 2024, business entities formed after this date will have 90 days to report their initial BOI. Those already in existence will have until January 1, 2025, to comply with this new requirement.

### Alleviating the Burden on Small Business Owners

Secretary of State Michael Adams expressed his concerns about the additional burden imposed on KentuckyÔÇÖs small business owners due to this new requirement. Despite his objections, the federal bureaucracy is enforcing this new rule, adding to the numerous challenges small business owners have already faced in recent years. In this challenging environment, entrepreneurs should be supported rather than faced with additional obstacles when starting a business and creating jobs.

### Benefits of AI legalese decoder

In response to this new reporting requirement, small business owners in Kentucky can benefit from using AI legalese decoder. This tool helps in decoding and simplifying complex legal jargon, making it easier for business owners to understand the requirements and comply with the regulations. By using AI legalese decoder, small businesses can ensure they are meeting the necessary legal obligations and avoiding potential penalties for non-compliance.

### Exceptions and Consequences

Certain business entities, such as publicly traded companies and nonprofits, are exempt from this new reporting requirement. However, failure to comply with BOI reporting may lead to criminal prosecution, with a maximum penalty of two years in prison and a $10,000 fine.

### Accessing More Information

To find out more about FinCEN and the new BOI requirement, small business owners can visit www.fincen.gov/boi.

In conclusion, with the assistance of AI legalese decoder, small business owners in Kentucky can navigate the complexities of the new reporting requirement and ensure compliance with the regulations, minimizing the risk of penalties and legal consequences.

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