IMPORTANT: File Your BOI Report for the Government Before 12/31!
I made some changes to my blog post schedule due to a critical deadline that is coming up, and I want to ensure everyone who visits my website is aware of it. The “Beneficial Ownership Information” (BOI) report is a report that business owners must file for the Financial Crimes Enforcement Network (FinCEN), and failure to do so by December 31 (for businesses formed prior to 2024) or within 90 days of formation (for businesses formed in 2024) will result in massive penalties. Businesses that form in 2025 or later will only have 30 days from formation to file the report. If you're unfamiliar with this requirement, now is the time to understand its purpose, requirements, and consequences of non-compliance.
What Is the BOI Report?
The BOI report is a regulatory measure designed to increase transparency around business ownership. It requires organizations to disclose information about individuals who own or significantly control the entity, known as "beneficial owners." These individuals could include major shareholders, officers, directors, or anyone with substantial influence over the company's operations. This initiative aims to combat money laundering, tax evasion, and other illicit activities by providing regulators with a clear picture of corporate ownership structures.
What Information Is Required?
Businesses must provide detailed information about each beneficial owner or key decision-maker, including:
Full legal name
Date of birth
Residential or business address
Identification number (such as a driver’s license or passport number)
The report submission process varies by jurisdiction, but the information provided must be accurate and up to date to ensure compliance.
What Happens If You Don’t File?
Failing to file the BOI report on time can have serious consequences. These penalties underscore the importance of meeting this regulatory obligation:
Financial Penalties: Non-compliance with FinCEN’s BOI requirements can result in fines of up to $500 per day until the report is submitted. These daily fines can quickly add up, creating unnecessary financial strain for businesses.
Criminal Penalties: In cases of intentional misrepresentation or repeated failure to comply, businesses or individuals may face criminal charges. These charges could result in additional fines.
Regulatory Consequences: Non-compliance may lead to increased scrutiny from regulatory authorities. This can affect your organization’s standing with oversight agencies and potentially lead to further audits or investigations.
Loss of Good Standing: Businesses that fail to comply with BOI requirements risk losing their good standing status. This can have wide-reaching implications, such as difficulty securing financing, conducting transactions, or maintaining relationships with partners and clients.
How to Stay Compliant
To avoid these penalties, it’s important to stay informed and proactive about BOI reporting requirements. If you haven’t filed your BOI report yet, start gathering the necessary information for your report now. When you are ready to file, you may do so here: https://fincen.gov/boi
If you’re unsure about how to comply, consulting a professional can save time and reduce stress. Professionals can guide you through the reporting process, ensuring that your submission is accurate and timely. BOI report filing is not a service that I provide, but you may visit https://www.ctacompliancehelp.org/ or https://liabilitylessons.com/ if you would like the peace of mind of having a professional file your BOI report.
Final Thoughts
Whether you’re a small business owner or part of a larger corporation, understanding the BOI report and its requirements is crucial. With the end-of-year deadline approaching, now is the time to ensure your business meets its obligations. Compliance today means avoiding complications tomorrow.
