Starting January 1, 2024, the Corporate Transparency Act will require many businesses to report detailed information about their ownership through a Beneficial Ownership Information (BOI) report. This new mandate is essential for increasing transparency and preventing illegal activities like money laundering and fraud. If your business is affected by these regulations, it’s crucial to understand what a BOI report is, who needs to file, and the consequences of non-compliance.
What Is a BOI Report?
A BOI (Beneficial Ownership Information) Report is a document that identifies the individuals who directly or indirectly own, control, or benefit from a company. This report is crucial for ensuring transparency and compliance with federal regulations, aiming to prevent financial crimes such as money laundering and tax evasion.
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Why BOI Reports Matter
The BOI report is designed to reveal who truly owns and controls businesses like LLCs and corporations. By requiring detailed disclosures, the U.S. government can better protect financial systems and enhance national security. Transparency is key to preventing illegal activities, and the BOI report plays a vital role in this effort.
Does Your Business Need to File a BOI Report?
- Domestic Reporting Companies include any corporation, LLC, or business entity formed by filing with a state or tribal authority.
- Foreign Reporting Companies include corporations or LLCs formed under foreign law but registered to do business in the U.S.
To find out if your business needs to file, you can read more here.
American Contractors Organization is set up to help you file through a secure platform.
Who Is Exempt from BOI Reporting?
Certain businesses are exempt from BOI reporting, such as publicly traded companies, many nonprofits, and large operating companies that meet specific criteria. There are 23 categories of exemptions in total, which are detailed in FinCEN’s guidelines.
Penalties for Not Filing
Failing to file a BOI report on time can result in severe penalties. Businesses that don’t comply may face fines of up to $500 per day. Willfully failing to file or providing false information can lead to criminal penalties, including fines up to $10,000 and imprisonment for up to two years.
When is the Deadline to File?
FinCEN will begin accepting BOI reports on January 1, 2024. Businesses formed before this date must file by January 1, 2025. New businesses formed on or after January 1, 2024, have 90 days from their formation date to file.
All businesses that qualify as reporting companies must file their BOI reports with the Financial Crimes Enforcement Network (FinCEN). American Contractors Organization can help you navigate this new Federal requirement and help you get your BOI filed in a timely manner.
Ready to File?
We Can Get Your Business Compliant
Navigating new regulations can be challenging, especially with complex reporting requirements like the BOI report. Our team handles all the filing so you can focus on running your business. We even offer ongoing compliance assistance to keep you up to date with any changes.
Our Service Includes:
- Report Filing: Accurate filing of your initial BOI report in 2024, with a guarantee of 100% accuracy.
- Ongoing Compliance: We manage any necessary updates or amendments, ensuring you never fall out of compliance.
Protect Your Business and Avoid Fines
Don’t let complex regulations put your business at risk.
