Beneficial Ownership Information (BOI) is a set of details about the people who directly or indirectly own or control a company. The Corporate Transparency Act of 2021 requires certain companies to report BOI to the Financial Crimes Enforcement Network (FinCEN). Companies must file their BOI reports electronically through FinCEN’s website. https://www.fincen.gov/boi

Companies that must report BOI include Corporations, Limited liability companies (LLCs), and Foreign companies registered to do business in the U.S.

To report BOI, companies must provide the following information for each beneficial owner:

• Name, Date of Birth, Address, and an Identifying Number and Issuer from a non-expired U.S. driver’s license, passport, or other acceptable identification document

Reporting is free, secure, and simple, and most companies can complete it without the help of a lawyer or accountant. Companies only need to report once, unless they need to update or correct information.

The Corporate Transparency Act (CTA) imposes penalties for failing to report BOI or for reporting false or fraudulent information:

• Civil penalties: Up to $500 per day for each violation
• Criminal penalties: Up to two years in prison and/or a fine of up to $10,000
• Enhanced criminal penalties: Up to 10 years in prison and/or a fine of up to $500,000 if the violation involves another law or is part of a pattern of illegal activity

The deadline for filing BOI reports depends on when the company was created or registered:

• Before January 1, 2024: Companies must file by January 1, 2025
• On or after January 1, 2024: Companies have 90 days to file after receiving notice of their creation or registration
• On or after January 1, 2025: Companies have 30 days to file after receiving notice of their creation or registration

Be sure you get this done by year-end, this is not something that your CPA does and happens with your tax filing. If you don’t, the penalties could potentially crush your business.