A critical change is approaching that you can't afford to miss. With severe penalties of up to $500 per day or even two years in prison, understanding the new Beneficial Ownership Information (BOI) requirement is now more important than ever. As part of the Corporate Transparency Act, this regulation signifies a major shift toward transparency and accountability.
Understanding the Corporate Transparency Act (CTA)
Enacted in 2021, the Corporate Transparency Act aims to battle illicit financial activities such as money laundering and terrorist financing. By requiring certain businesses to disclose their beneficial ownership details, the CTA fundamentally alters corporate disclosure norms in the United States.
The Essence of Beneficial Ownership Information (BOI)
BOI comprises the critical data about individuals who ultimately own or control a corporate entity. This requirement is crucial for shedding light on the true stakeholders behind a company and ensuring a transparent business environment.
Who is Obligated to File?
The CTA mandates "reporting companies," including corporations and LLCs, to submit their BOIs. This means if you're an LLC owner, you are likely subject to this rule. While some entities are exempt, such as sole proprietorships and publicly traded companies, most small business entities must adhere to this new regulation.
Reporting Deadlines You Can't Miss
Mark your calendars!
Entities formed before January 1, 2024, have until December 31, 2024, to file their BOI,
Established after 1/1/24- have 90 days post-formation.
If you form your business after 1/1/25- you will have 30 days post-formation to file.
Once submitted, you have to submit any changes within 30 days of changes that are made (new ownership, an owner left, etc.)
Don't let these dates slip by, as failure to comply could result in harsh penalties.
Here is where you will file your BOI: https://www.fincen.gov/boi
LEARN HOW TO FILE YOUR BOI WITH THIS STEP-BY-STEP GUIDE ⬇️
What to Include in Your BOI
Your filing should encompass the complete legal name, birth date, address, and identification number of each beneficial owner, along with the nature and extent of their ownership. Accuracy is vital—any omissions or errors could lead to significant penalties.
See our handy dandy guide below and federal booklet
Seamlessly File Your BOI through BOSS (the gov's online system)
Filing your BOI is straightforward and FREE (DON'T GET SCAMMED AND THINK YOU HAVE TO PAY) via the Beneficial Ownership Secure System (BOSS) on FinCEN's website. Steer clear of any service charging you for this process; the government does not require a fee.
Don't Fall for Scams
In this age of misinformation, be wary of fraudulent companies preying on uninformed business owners. Always verify information, seek professional advice if needed, and trust only official sources. Be sure to double-check you are on the federal website only!
Seeking Assistance? Know When and Where
Sometimes, navigating these waters requires a helping hand. Whether it's a lawyer or an accountant, ensure you get the expert help you need for full BOI compliance.
The introduction of the BOI requirement under the Corporate Transparency Act is a bold step toward a financially transparent America. Compliance is non-negotiable, and preparation is key to avoid penalties. So be sure to check your deadlines and requirements to stay compliant and avoid $500 a day fine and up to 2 years in prison!