Don’t Miss This Important Deadline for Small Business Owners: BOI Reporting

Attention small business owners! The clock is ticking on a critical deadline for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA). This federal regulation aims to enhance transparency and combat financial crimes by requiring many U.S. companies to disclose key information about their ownership. Let’s break down what you need to know—and why you can’t afford to delay.

Who Needs to File?

If your business falls into one of the following categories, you may need to submit a BOI report:

• Formed or registered before January 1, 2024: File your BOI report by January 1, 2025.
• Formed or registered in 2024: Submit your BOI report within 90 days of formation or registration.
• Formed or registered on or after January 1, 2025: You must file within 30 days of formation or registration.

If you’re unsure whether the CTA applies to you, consult your legal or financial advisor.

What Information Is Required?

For each Beneficial Owner, your report must include:

1. Full legal name
2. Date of birth
3. Residential or business address
4. A unique identifying number (e.g., driver’s license, passport)

If your company is a single-member LLC or disregarded entity without its own Federal Employer Identification Number (FEIN), you can use the owner’s Social Security Number or FEIN.

Why Does This Matter?

Failing to comply with the CTA can result in serious consequences, including:

• Civil penalties up to $500 per day, the report is late.
• Criminal penalties, which may include fines or imprisonment in severe cases.

Don’t let a missed deadline put your business at risk!

How to File

Filing is straightforward but requires accuracy:

1. Register with FinCEN via their online portal.
2. Complete Form FinCEN 114, providing the required ownership details.
3. Submit your report electronically before your deadline.

You’ll also need to update your report within 30 days of any changes, such as ownership or management shifts.

Key Reminders

• Businesses dissolved before January 1, 2024, are exempt from filing.
• Large companies with 20+ full-time U.S. employees, $5 million+ in revenue, and a U.S. office may qualify for an exemption.
• Penalties apply to most companies that fail to meet the requirements unless exempt.

Act Now to Avoid Penalties

Don’t wait until it’s too late. Visit https://boiefiling.fincen.gov/ to file now.

Disclaimer

This article is for informational purposes only and does not constitute legal, financial, or compliance advice. For guidance specific to your business, consult a licensed attorney or compliance professional.