Beginning January 1, 2024, businesses must comply with a new federal reporting rule known as Beneficial Ownership Information (BOI) reporting. This requirement, established under the Corporate Transparency Act, mandates many businesses to disclose ownership details to the Financial Crimes Enforcement Network (FinCEN).
Businesses formed on or before January 1, 2024, must file by January 1, 2025. Newly formed businesses will have 30 days to submit their reports. Missing these deadlines could result in fines of up to $591 per day and potential criminal penalties. Here’s what you need to know to ensure compliance and avoid penalties.
What Is BOI Reporting?
BOI reporting enhances financial transparency and helps prevent crimes like money laundering and fraud. It requires businesses to submit information about their ownership and control to FinCEN.
The following details are required:
- Company Information: Legal name, trade names (DBA), principal business address, jurisdiction of formation, and Taxpayer Identification Number (TIN).
- Beneficial Owner Information: Details about individuals with significant control or ownership (25% or more). This includes their name, date of birth, residential address, and identification (e.g., passport or driver’s license). Learn more about what constitutes a beneficial owner.
Who Must File BOI Reports?
Most corporations, LLCs, and similar entities need to file BOI reports. If your business was formed on or before January 1, 2024, your report must be filed by January 1, 2025. Businesses formed after this date must file within 30 days of formation.
Some organizations, such as publicly traded companies and certain financial institutions, are exempt. A full list of exemptions is available in FinCEN’s FAQs. If you’re unsure whether this applies to your business, contact ASAP Payroll for assistance.
How to File BOI Reports
There are two main options for submitting your BOI report:
- Self-Filing: Use FinCEN’s BOI E-Filing System. While there is no cost for self-filing, the process requires attention to detail to ensure accuracy. FinCEN provides step-by-step instructions to assist filers.
- ASAP Payroll’s Filing Service: Simplify the process by letting us handle your BOI filing. Our affordable service includes:
- $150 for a single-owner business
- $25 per additional owner, officer, or agent
Why Compliance Matters and How ASAP Payroll Can Help
Failing to comply with BOI reporting rules can result in significant penalties. Fines may reach $591 per day, and criminal charges could apply for severe violations. Filing your BOI report accurately and on time protects your business from these risks. Learn more about the penalties for non-compliance.
At ASAP Payroll, we specialize in helping small businesses meet compliance requirements. Our team is committed to making the process as simple as possible so you can focus on running your business. Whether you choose to file on your own or let us handle the filing, we provide reliable support every step of the way.
Take control of your compliance today. Contact ASAP Payroll for guidance or to use our filing services. With the deadline approaching, now is the time to act.
