FinCEN’s BOI Reporting Deadline: Corporations, LLCs, and similar entities should act by 01/01/2025
As the New Year approaches, businesses need to prepare for a significant federal compliance deadline. The Financial Crimes Enforcement Network (FinCEN) has mandated that by January 1, 2025, most U.S. companies must report their Beneficial Ownership Information (BOI). This requirement, stemming from the Corporate Transparency Act (CTA), aims to combat money laundering, tax fraud, and other financial crimes.
If you’re unsure what this means for your business, here’s a breakdown of what you need to know—and how to act.
What is BOI? Why does it matter?
BOI refers to critical details about individuals who own, control, or benefit from a company. This reporting requirement targets shell companies often used to hide illicit activities. By gathering this information, FinCEN intends to enhance transparency and security in the financial ecosystem.
For legitimate businesses, the BOI reporting requirement ensures compliance while fostering trust and credibility among stakeholders. However, non-compliance can lead to hefty fines and legal consequences.
Who must report?
Under the CTA, the reporting requirement applies to most small and medium-sized businesses, including:
- Corporations, LLCs, and other similar entities registered in the U.S.
- Foreign entities doing business in the U.S.
Exemptions exist for larger organizations like publicly traded companies, certain nonprofits, and businesses employing over 20 people with $5 million or more in annual revenue.
What do you need to get ready? What information must be reported?
You will need the following information to prepare for your submission:
- Company Details: Legal name, address, and EIN (Employer Identification Number). We pulled our LLC paperwork and owner’s ID (driver’s license or Passport) and were set to go.
- Beneficial Owners’ Information:
- Full name
- Date of birth
- Address
- Identification numbers (e.g., driver’s license or passport).
This data will be submitted directly to FinCEN through their online portal.
Where do I file?
Here is the link to file your information (it wasn’t easy to find a couple of weeks ago, so we hope this helps!
What if we do not file?
Failure to comply by January 1, 2025, can result in severe penalties, including:
- Fines up to $591 per day until the issue is rectified.
- Criminal charges with fines up to $10,000 or imprisonment for willful non-compliance.
Timely action ensures you avoid these pitfalls and demonstrates a commitment to operating within legal boundaries.
Stuck? Let us know if we can help!
Compliance goes beyond filling out forms—it is about understanding the nuances of the law and effectively communicating with stakeholders. This is where Windward Design Group’s expertise in integrated marketing, PR, and communications comes into play:
- Strategic Messaging: We craft clear, concise messaging to inform employees, investors, and partners about your BOI compliance.
- Brand Protection: Demonstrating transparency enhances your reputation. We align your compliance efforts with broader branding goals.
- Media Relations: If your business faces scrutiny, we manage the narrative, ensuring your story is told accurately and positively.
- Content Creation: From internal memos to social media updates, we provide materials that educate and reassure your audiences.
Time is running out for businesses to prepare for FinCEN’s BOI reporting deadline.
We provide consulting services to small businesses. Contact us today to learn how we can help you navigate this new requirement while reinforcing your business’s position as a trustworthy and transparent organization.
Call us at 937.456.2301 or contact us here.
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Important Update – December 6, 2024 | Texas and Alabama Judges rule BOI unconstitutional in early December. What now?
We were made aware of unconstitutional pushback on BOI. If you have already submitted your information (as we have!), we are told we do not have to worry . . . it is ‘fully private and not public’. If you decide you want to wait for more information to unfold, keep watching BOI news headlines for updates over the next couple of weeks for more direction. For legal advice, we suggest you contact your business attorney to determine your course of action to avoid any fines and/or legal pitfalls.