Friendly reminder: The deadline is approaching. Have you submitted your Beneficial Ownership Information Report to FinCEN?

Who Needs to File the BOI Report? Entities subject to the Beneficial Ownership Information (BOI) reporting requirements primarily include corporations, limited liability companies, and similar entities formed or registered to do business in the United States. This requirement extends to domestic and foreign entities registered in the U.S. These organizations must file a BOI report with the Financial Crimes Enforcement Network (FinCEN) to comply with the Anti-Money Laundering Act and other related regulations.

COMPLIANCE & FEDERAL REPORTING

10/6/20242 min read

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Who Needs to File the BOI Report?

Entities subject to the Beneficial Ownership Information (BOI) reporting requirements primarily include corporations, limited liability companies, and similar entities formed or registered to do business in the United States. This requirement extends to domestic and foreign entities registered in the U.S. These organizations must file a BOI report with the Financial Crimes Enforcement Network (FinCEN) to comply with the Anti-Money Laundering Act and other related regulations.

Filing Deadlines for the BOI Report

The deadlines for filing your Beneficial Ownership Information (BOI) report depend on your entity's formation or registration date. Entities formed on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file their initial BOI report. Existing entities formed before January 1, 2024, will have until January 1, 2025, to submit their initial beneficial ownership information report.

Where to File the BOI Report and Penalties for Non-Compliance

Entities can submit their short BOI report through FinCEN's secure online portal at https://fincen.gov/boi. The online system ensures a straightforward and efficient filing process. Organizations must provide accurate and comprehensive information to avoid penalties. On average, it takes 10 minutes to complete the report, and it is free to file.

Failure to file your Beneficial Ownership Information report timely can lead to significant penalties. For example, failing to submit the BOI report by the deadline can result in civil penalties of up to $500 each day the violation continues. Furthermore, organizations that willfully fail to file may face criminal penalties, including substantial fines and imprisonment. Therefore, adhering to the filing requirements is crucial to avoid these severe consequences.

Given the importance of compliance with these regulations, entities should establish a reliable system for tracking deadlines and ensuring that necessary reports are filed on time. Engaging with legal or compliance professionals may provide additional guidance in navigating these requirements.