If you’re a business owner, you’ve likely heard about BOI in the last two years and may have some questions about how it impacts your business. This article is meant to cover what it means at a high level and what that means for your business individually. And if you have any questions beyond what we cover today, please reach out to our team either through our website chat or call us and we’re always happy to help!

We’ve previously released information related to BOI and what it stands for, but hopefully this serves as a helpful review, gives you some information you didn’t know already, and helps you understand everything you need to know as a business owner.

What Does BOI Stand For?

BOI stands for Beneficial Ownership Information. It’s a reporting requirement from the federal government through a division of the Treasury department. If your business is an LLC or a corporation, you are required to file this report with FinCEN (the Financial Crimes Enforcement Network). 

What is the Purpose of BOI?

The purpose of BOI is to combat fraud, money laundering, and other types of illegal activity. By providing Beneficial Ownership Information, it helps increase the legitimacy of all business activities and prevents under the table or illegal exchanges from happening. Sometimes organizations will set up shell companies to disguise the actions their businesses are taking or where they money is going so providing the government with this Beneficial Ownership Information helps prevent organizations from behaving in this way.

When do I Need to File this Report By?

If your business was formed prior to 2024, you have until January 1, 2025 to submit the report. If your business was formed after January 1, 2024 then you have 90 days to file after your business has been formed. For all you business owners that already had your businesses prior to this taking effect, you still have till the end of the year to file and get your paperwork in on time. For those of you that started a business this year, it needs to be on your 90-day radar to complete otherwise your business could face penalties.

Where should I File this Report?

You can file your BOI Report at MyCorporation.com for only $159! Our team makes it simple and easy to get your report done with everything it needs to keep your business in compliance. There are other places you can file this report, we just try to make it as simple and straightforward for you as we can.

You can always file this report by yourself through FinCEN’s own website electronically, but our team helps with the filing process to make sure it’s in compliance with federal government regulation.

What is the Corporate Transparency Act and How Does It Implement BOI?

According to fincen.gov, the Corporate Transparency Act: “creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.” It was a bipartisan piece of government legislation passed in 2021. 

Do I have to File a BOI Report? Are There Exceptions?

All corporations and LLCs are required to file a BOI report unless they fall under 23 different exceptions listed on the FinCEN website. These include: Securities reporting issuers, Governmental authority, Banks, Credit Unions, Depository institution holding companies, Money services businesses, Broker or dealer in securities, Securities exchange, Other exchange act registered entity, Investment companies, Venture capital, Insurance companies, State-licensed insurance producers, Commodity Exchange act registered entities, Accounting firms, Public Utilities, Financial market utilities, Pooled investment vehicles, Tax-exempt entities, Large operating companies, Subsidiary of certain exempt entities, and inactive entities.

Who can Access Your Beneficial Ownership Information?

Federal, state, and local officials an access this information for security, intelligence, and law enforcement purposes. This information is protected and is only allowed in select other cases to financial institutions with consent from the companies that are reporting their information.

What Should I Do If I’m Unsure About My BOI Report?

The best thing to do if you’re unsure about your BOI report, how to file, or have other general questions about how this impacts your business, you can consult the FinCEN website to check on the specific guidelines (there are many). If you want help from professionals that support entrepreneurs day in and day out, our team is standing by to help! You’re more than a number on a list to us and we treat everyone who reaches out to our team as a valuable member of the entrepreneurial community. 

What Happens If I Don’t File My BOI Report?

If you don’t file your report or misrepresent information on your report, you can be hit with fines of up to $500 a day, two years imprisonment, and up to a $10,000 fine. In some cases, mistakes can be corrected within a 90 day window, but there are potential civil and/or criminal penalties for ignoring BOI all together.

Summary

Beneficial Ownership Information is a helpful tool for government agencies to prevent fraudulent business activity. Your report can be filed easily at MyCorporation.com for a small fee. And if your business was formed prior to this year, you still have till the end of the year to file.
If our team can be a resource for you to prepare a beneficial owner report, please don’t hesitate to reach out! You can contact us through any of our social media channels or thru the chat widget on our website.