You’ve likely heard about the new Beneficial Ownership Information (BOI reporting) requirements as a small business owner. These reporting requirements went into effect on January 1, 2024. The Financial Crimes Enforcement Network (FinCEN) has moved the deadline for this report to March 21, 2025! With the March 21, 2025 deadline approaching quickly, it’s vital to file your BOI as soon as possible. Failure to meet your BOI reporting requirements by the deadline set by the FinCEN will result in a DAILY fine of $591. You can click HERE to file your BOI now with ACCTAX Biz. To further understand BOI reporting and why you must file this report, continue reading below.
What is BOI Reporting?
BOI reporting is mandated by the Corporate Transparency Act (CTA), which requires millions of small businesses to disclose who owns or controls their company to the Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of Treasury.
This requirement aims to increase transparency in business ownership and prevent illegal financial activities. Most small businesses filed documents with the Secretary of State when somebody created the business. These business owners will need to file a BOI. These companies include corporations, LLCs, limited partnerships, and other registered business entities. If you are unsure if your business falls into this category, click HERE to be directed to someone who can help you find out.
What Information Must Be Reported?
When you file your BOI, you will need to report the full legal name of the company, the physical business address, the state or Tribal jurisdiction in which the company initially formed, the tax identification number, and any identity documents such as Articles of incorporation. You will also need to report on each beneficial owner. A beneficial owner is any individual who exercises substantial control over the company or owns at least 25% of the interest. For each beneficial owner, you must report the full legal name and date of birth, current physical residence, and a photocopy of the owner’s U.S. driver’s license or passport. Note that a P.O. box is not an acceptable address for either the business address or the owner’s home address. Using a P.O. box may result in late reporting and late fees.
Important BOI Reporting Deadlines and Penalties
The deadline for most existing companies to file their BOI report is March 21, 20251. Failing to meet this deadline can result in civil penalties of up to $591 per day, criminal penalties of up to two years imprisonment, and fines of up to $10,000! To avoid these fines, click HERE to contact an accountant at ACCTax Biz.
How to File For Your BOI Reporting
All BOI reports must be filed electronically through FinCEN’s online platform. You have a few options: 1) contact a specialist to file for you and ensure your reporting is accurate and on time. 2) Complete the filing by uploading a PDF, or 3) use FinCERN’s online platform to enter information directly.
The filing process may sound easy, but it will require you to identify the following things and file the necessary documentation without error:
- Determine if your business qualifies as a reporting company
- Identify all beneficial owners
- Establish a procedure for collecting and maintaining the required information
- Submit your report through FinCEN’s website
Don’t wait until the last minute to prepare your BOI report. With the March 21, 2025 deadline approaching and significant daily penalties for non-compliance, now is the time to identify your beneficial owners and gather the required information. Take action today to ensure your business complies with these new federal requirements. If you need assistance, click HERE to be directed to ACCTax Biz.
If you want to learn how tax penalties drain your business’s revenue, click HERE.