Reminder: Upcoming Deadline to Submit Your Beneficial Ownership Information Report to FinCEN

If you own or manage a business, it's time to mark your calendars for an important compliance deadline: the submission of your Beneficial Ownership Information (BOI) report to FinCEN (Financial Crimes Enforcement Network), a division of the U.S. Department of Treasury. 

The reporting requirements, mandated by the Corporate Transparency Act (CTA), aim to prevent financial crimes like money laundering, tax evasion, and fraud. The CTA seeks to improve transparency about who owns and operates entities based in the United States. 

What You Need to Know About BOI Reports

All U.S. corporations and LLCs will need to submit a BOI Report unless they qualify for an exemption.

Companies that meet all three of these conditions are exempt from filing a BOI Report:

• The business employs over 20 people;
• It reports gross receipts exceeding $5 million; and
• It has a physical office presence within the United States.

Other entities exempt from filing include publicly traded companies, those filing reports with the SEC, banks, credit unions, money services businesses, securities brokers and dealers, tax-exempt organizations, insurance companies and producers licensed by the state, pooled investment vehicles, public utilities, and accounting firms.

BOI Reporting requirements include newly formed companies as well as those already established. If you're unsure whether your company qualifies, it’s essential to review the CTA requirements or consult a legal advisor.

For more details, check out our blog post for an introduction to the Corporate Transparency Act. 

What Information is Required on a BOI Report?

The Beneficial Ownership Information Report details include:

• The company’s legal name and any trade name or DBA;
• Company address;
• The jurisdiction where it was formed or registered, whether it’s a U.S. or foreign company; and
• Taxpayer identification number.

Learn more about beneficial ownership information here. 

The company's beneficial owners and each company applicant (if it is an LLC or corporation formed in 2024 or later) are required to provide the following personal details:

• Legal name;
• Birthday;
• Address (typically a home address);
• An identifying number from a driver's license, passport, or other approved document for each individual, including an image of the document that number is from.

Learn more about company applicants here. 

When is the Deadline?

The deadline for submitting your report varies based on when your business was formed:

• For businesses formed or registered before January 1, 2024, the deadline is January 1, 2025.
• For businesses formed on or after January 1, 2024, reports are due within 30 days of formation or registration.

What Happens if You Don't File a BOI Report

Failing to submit your BOI report can result in steep penalties including fines and potential criminal charges. If your business does not meet one of the exception criteria, you are legally required to file a BOI report. 

How to File a BOI Report

BOI reports may be filed directly with FinCEN by utilizing their online system or uploading a PDF. File a BOI report with FinCEN here.

If you would prefer to have assistance filing your BOI report, The Incorporators has partnered with FinCEN Report to provide secure filing service. This service allows business owners to file with confidence and is particularly helpful for businesses with multiple beneficial owners who wish to submit their information separately. 

Get started with FinCEN Report here. 

Don’t let the upcoming deadline catch you off guard. The process of collecting and submitting the required information may take some time, but staying compliant is essential to avoid fines or potential legal issues.

Being proactive will save you time and stress—and ensure your business remains on the right side of the law.