As a small business owner, you now face a new administrative burden — submitting Beneficial Ownership Information (“BOI”) concerning your company to FinCEN, as required under the Corporate Transparency Act. This means that reports must be filed for any of your existing and new organizations not otherwise exempted under the regulations, as well as in the future whenever material changes are made to your business that require an update under FinCEN rules.
Further, missing any filing deadlines for these reports may lead to severe criminal and civil penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000.
Our team is committed to helping you navigate the various BOI reporting requirements, including assessing whether you are a reporting entity, helping you to achieve filing compliance, and assisting with future reporting, whenever the need arises.
Our firm specializes in BOI filings for entrepreneurs, and small businesses.
- Prepare and file a FinCEN BOI report once we receive all pertinent information necessary to complete your business filing.
- Obtain a FinCEN identification number for your business, as needed.
- Provide a secure online portal and storage of your BOI reports and information.
- Provide copies of all data and documents submitted and received to/from FinCEN on behalf of your business.
- Assist in updating BOI reports when material changes to your business occur (requires additional fee).
Q. What is the purpose of FinCEN's BOI reporting requirements?
A. The purpose of FinCEN's Beneficial Ownership Information (BOI) reporting requirements is to enhance transparency and combat financial crimes, including money laundering and terrorist financing. By requiring companies to disclose their beneficial owners—individuals who ultimately own or control the company—FinCEN aims to improve the ability of law enforcement and financial institutions to detect and investigate illicit activities.
Q. Who is required to file a BOI report with FinCEN?
A. Entities that are required to file a BOI report include domestic and foreign entities that are registered or operating in the United States, such as corporations, limited liability companies (LLCs), and similar entities. Exemptions may apply to certain types of entities, such as regulated banks, credit unions, and entities already subject to similar reporting requirements under other federal laws.
Q. Are there penalties if I decide not to file?
A. Failure to comply with BOI reporting requirements can result in severe penalties. This may include civil fines, criminal penalties, or both. Non-compliance can also lead to legal action or other regulatory consequences. The severity of the penalties will vary based on the nature and extent of the violation.
Q. When are entities required to file a BOI report?
A. As of 2024, entities are required to file a BOI report within 90-days of formation (and within 30-days in subsequent years). Additionally, they must update their BOI reports within a specified period if there are changes to the beneficial ownership information. The deadlines for initial reporting and updates are designed to ensure that the information remains current and accurate.
HELPFUL RESOURCES
An Overview of BOI Reporting ▸
FinCEN BOI Compliance Guide ▸
FinCEN FAQs Online ▸