BOI reporting requirements can be complex and confusing, so we’ve created this resource to help clarify what you need to know. Here, you'll find essential information and guidance to navigate these requirements with ease and confidence.
What is a BOI Report?
The Beneficial Ownership Information (BOI) report is a vital document that outlines key details about a company and its beneficial owners. This includes basic information like the company’s name, address, and relevant details about ownership. It also contains specific identification and personal details about the individuals who own or control the company.
Established under the Corporate Transparency Act in 2021, the BOI report is now a requirement enforced by the Financial Crimes Enforcement Network (FinCEN) for all applicable companies. This mandate promotes transparency in corporate ownership to combat issues like corruption, money laundering, and terrorism financing. For official information on this requirement, including a list of the filing, as well as some helpful resources, visit FinCEN’s BOI page.
How to File
You can submit your BOI report at no cost on FinCEN’s website. Some companies also offer
filing services for a reasonable fee, including:
Gusto (for their payroll clients)
Consequences of Not Filing
Filing a BOI report is mandatory. Companies that do not file by January 1, 2025, could face
serious penalties, including fines up to $591 per day, with a maximum fine of $10,000.
Additionally, if a company knowingly neglects to file, the responsible individuals may face
criminal charges, with the possibility of up to two years in prison.
Conclusion
The BOI report marks a major step towards increased corporate transparency, aimed at
safeguarding financial systems. For businesses, understanding the requirements and potential consequences of non-compliance is essential in today’s regulatory environment