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Don’t Get Fined: How to File BOI By The Deadlines




Beneficial Ownership Information (BOI) filing is becoming an increasingly crucial part of regulatory compliance for businesses, and failing to meet these deadlines can result in costly fines and penalties. 


The U.S. government has ramped up efforts to increase transparency in financial dealings, with BOI filings playing a key role. The purpose is to prevent illicit activities such as money laundering or tax evasion by ensuring that the true owners behind a business are disclosed.


Here, we break down BOI and why you need to file before the deadline. 


What is BOI and Why It Matters


BOI requires businesses to report who actually owns or controls the company. 


Typically, any individual with at least 25% ownership or significant control over the business must be disclosed. This isn’t just a formality; if you miss filing BOI by the deadline, you could face significant fines.


The Corporate Transparency Act mandates that many U.S. companies must submit BOI reports to FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Department of the Treasury. 


BOI filings also help prevent businesses from being used as a front for fraudulent activities by requiring transparency in ownership. This increased oversight makes it harder for bad actors to conceal their involvement in a company’s financial operations.


If you operate an LLC, corporation, or other legal entity, you’re likely required to file.


The Consequences of Missing Deadlines


Failing to file on time can lead to steep penalties, including fines up to $500 per day of non-compliance. 


More serious cases could lead to criminal charges. Not knowing or misunderstanding the requirement is not considered a valid excuse.


Missing the filing deadlines could also hurt your business’s reputation and limit your ability to access financial services. Banks and investors may be reluctant to work with businesses that fail to comply with BOI regulations, seeing them as higher-risk entities.


To avoid these penalties, it's critical to file on time and ensure your information is accurate. Filing your BOI late can complicate your financial standing and result in additional scrutiny from tax authorities.


How to Stay Compliant


To meet the filing requirements, gather essential information about your business’s beneficial owners. 


This includes their name, address, date of birth, and percentage of ownership. Make sure that this information is submitted well before the deadline, giving yourself time to correct any errors.


It's wise to consult with an accountant or legal professional to help navigate the complexities of BOI filing. Professionals can assist in making sure that your information is properly filed and compliant with federal requirements, preventing any future complications.


Here’s Who Must File


A legal entity such as a corporation, limited liability company, limited partnership or other similar entity is required to file BOI. This includes single member LLCs created for schedule C and schedule E.


There are different filing time frames depending on when an entity is registered/formed or if there is a change to the beneficial owner’s information:

 

  • Created or registered before January 1, 2024: The deadline to file the BOI report is January 1, 2025.

  • Created or registered on or after January 1, 2024, but before January 1, 2025: The deadline to file the BOI report is 90 calendar days after the LLC's registration.

  • Created or registered after January 1, 2025: The deadline to file the BOI report is 30 calendar days after the LLC's registration. 


As BOI reporting becomes more important, staying ahead of deadlines is critical. By being proactive and filing on time, you can avoid fines, protect your business, and remain in good standing with regulatory authorities.


About Real Finance Group


Real Finance Group LLC is a resolute and full-service accounting firm, dedicated to empowering Business Owners and Non-Profits by optimizing their financial operations. Our expertise lies in refining accounting structures to ensure the delivery of precise financial data, which is crucial for informed decision-making. We are committed to providing personalized accounting solutions with a focus on efficiency and accuracy, tailored specifically to meet the distinct needs of each client.


Furthering our commitment to fostering business growth, Real Finance Group LLC offers comprehensive training workshops. These are designed for any audience eager to master business financial management and planning, as well as non-profit management. Our approach is not just supportive but transformative, aiming to elevate the financial insights and operational effectiveness of all our clients. 


For more information, please contact us today.


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