As a small business owner, understanding the new Beneficial Ownership Information (BOI) reporting requirements is crucial. Here’s a concise overview of what you need to know.
What is BOI Reporting?
BOI reporting, mandated by the Corporate Transparency Act, requires certain businesses to disclose information about their beneficial owners—those who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN).
Who Needs to Report?
Most small businesses structured as corporations or LLCs must report, though there are 23 exemptions for heavily regulated industries.
Required Information
– Full legal name
– Date of birth
– Current residential address
– Government-issued ID number
Additionally, you must submit your company’s legal name, trade names, business address, and formation details.
Key Deadlines
– **Existing companies** (before January 1, 2024): File by January 1, 2025.
– **New companies** (on or after January 1, 2024): File within 90 days of formation.
Filing Process
File electronically at FinCEN’s secure website, which is free of charge.
Important Reminders
1. **One-time filing**: Update only if ownership changes.
2. **Timely updates**: Report changes within 30 days.
3. **Beware of scams**: No fees are required for filing directly with FinCEN.
4. **Penalties**: Non-compliance can lead to fines or imprisonment.
Next Steps
1. Confirm if your business must report.
2. Gather necessary information.
3. Note your filing deadline.
4. Visit FinCEN’s BOI website for more details.
Staying compliant with BOI reporting is essential for your business’s good standing. If you have questions, consult a legal or financial professional familiar with these new requirements.
Possible Penalties:
Civil Penalties
– A civil penalty of up to $500 for each day that the violation continues.
– This amount is adjusted annually for inflation. As of April 2024, the daily penalty amount is $591.
Criminal Penalties
– Imprisonment for up to two years
– A fine of up to $10,000