Business owners are already plagued with a multitude of filings required by local, state, and federal governments. Unfortunately Congress dropped another headache on top of business owners when they passed the Corporate Transparency Act in 2021 which now requires all business ownership interest to be reported to the Financial Crimes Enforcement Network (FinCEN) beginning in 2024.
You are probably asking yourself, "Does this apply to me?" This is only something business owners need to worry about, but the answer in most cases is YES.
There are a number of businesses that are exempt, so please go to the FinCEN FAQs for more information: https://www.fincen.gov/boi-faqs
What is beneficial ownership information (BOI)?
BOI refers to the information of the direct or indirect owners of a business. The filing itself requires all owners of a business to disclose their name, address, SSN, and ID of their choice. Most people will choose to upload a photo of their driver's license, but there are other options such as a passport.
What are the penalties for failing to report?
You don't want to fail to report! The penalties are up to $500 per day and up to two years of imprisonment.
When is the due date for reporting BOI?
Most business have until January 1, 2025. New businesses registered in 2024 will have 90 days after receiving notification to report from FinCEN.
How often do you need to report BOI?
After the initial filing you will need to report BOI when there are ownership changes. If you have no changes to report, then you are compliant with reporting requirements.
Where do you report BOI?
The FinCEN website has an easy-to-use filing option online. You also have the option of mailing a paper form, but I recommend using the website: https://www.fincen.gov/boi
The good news is the filing itself only takes about 30 minutes depending on how many owners the business has. Please contact Delaney CPA if you have questions about BOIR.
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