As of January 1, 2024, many companies operating in the United States must comply with new Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act. Enforced by the Financial Crimes Enforcement Network (FinCEN), these rules aim to promote transparency, reduce money laundering, and protect the integrity of the U.S. financial system. The first major deadline—January 1, 2025—is fast approaching, so it’s critical to understand your obligations and act promptly. Check out our simple BOI Reporting fact sheet or continue reading to see what your reporting obligations may be.
Who Must Comply with BOI Reporting Requirements?
If you operate a corporation, LLC, or any entity formed by filing documents with a U.S. state or tribal authority, your company may be subject to BOI reporting.
- Existing Companies (before January 1, 2024): Must file their initial report by January 1, 2025.
- New Companies (2024): Must file within 90 days after receiving notice that their formation is effective.
- Starting January 1, 2025: Newly formed businesses must file within 30 days of receiving their effective notice.
What Information Must You Report?
You’ll need to provide details about all “beneficial owners”—individuals who either exercise substantial control or own at least 25% of the company’s ownership interests. Required information includes:
- Full legal name
- Date of birth
- Residential or business street address
- Unique identifying number (e.g., driver’s license or passport) and a copy of the identification document
How to File Your BOI Report with FinCEN
All reports must be filed electronically through FinCEN’s secure online filing system at https://boiefiling.fincen.gov/. For step-by-step instructions and additional resources, visit www.fincen.gov/boi. If you’re uncertain about any aspect of the filing process, the Reeder CPA Group team can guide you through each step and handle the filing on your behalf.
Penalties for Non-Compliance
Missing the deadline or providing incomplete or false information can lead to significant penalties:
- Civil Fines: Up to $591 per day (adjusted annually for inflation).
- Criminal Penalties: Fines up to $10,000, imprisonment for up to two years, or both.
These penalties can apply to the individuals responsible for submitting the report, underscoring the importance of meeting the deadline and ensuring accuracy.
Why BOI Reporting Matters
This requirement isn’t just about avoiding penalties—it’s about fostering transparency and combating financial crimes. By complying, you help protect your business, support fair commerce, and strengthen the overall financial system.
Next Steps to Ensure Compliance
- Determine Applicability: Confirm if your company must file.
- Gather Required Information: Identify all beneficial owners and compile their details.
- Prepare to File: Mark your calendar for the January 1, 2025 deadline, and complete your filing on time.
- Seek Professional Guidance: Contact the Reeder CPA Group team if you need assistance navigating the requirements or handling the filing process.
By taking action now and ensuring you meet the BOI reporting requirements, your business can avoid costly penalties, maintain good standing, and contribute to a more transparent and secure financial landscape.
