If you’re a business owner, there's a new filing requirement you need to know about. Starting in January 2024, the Corporate Transparency Act requires most businesses, including yours, to submit a Beneficial Ownership Information (BOI) report to the Financial Crimes Enforcement Network (FinCEN). Don’t panic — it’s a quick and simple process, and you only need to spend about 10 minutes on it. However, it’s important to get this done to stay compliant and avoid penalties.
What Exactly Is the BOI Report?
At its core, the BOI report is about transparency. It’s designed to make it clear who owns or controls your business. For most of you, this means submitting details about yourself if you’re the only owner of your LLC. This report will ask for:
Your full legal name
Your date of birth
Your residential address
A copy of a government-issued photo ID (think driver’s license or passport)
The information you submit is kept secure by FinCEN, and it won’t be made public. It’s only
available to law enforcement and authorized agencies if needed.
Who Has to File?
If you’re a single-member LLC owner, partnership, or corporation you’ll need to report your information. This is straightforward and won’t take long. If you have a more complex business with multiple owners, partners, or shareholders, you’ll need to report details for everyone who owns at least 25% of the company or has significant control over it. This also includes anyone with management control, like executives or key decision-makers. It’s important to note that some businesses don’t have to file — for example, publicly traded companies or large businesses with more than 20 employees and $5 million in revenue. But if you're a small business owner, chances are this applies to you.
How to File the BOI Report: Step-by-Step Guide
Filing your BOI report is simple and can be done in just a few steps:
Gather the Required Information:
If you’re a single-member LLC: You only need your own personal details and a copy of your ID.
If you have a more complex entity: You’ll need to gather the information for everyone who owns a significant stake in your business or has management control.
Submit the Report Online:
Once you’ve got everything you need, head to the FinCEN portal to submit your report. Most of you will be done in about 10 minutes.
Need a little help? Check out this video walkthrough for a step-by-step guide on how to file: How to File the BOI Report.
Don’t Miss the Deadline:
If your business was created before January 1, 2024, you have until January 1, 2025 to file.
If you’re a new business created on or after January 1, 2024, you’ll need to file within 30 days of forming your LLC or corporation.
Update Your Information:
If anything changes in the future — like ownership or your business address — you’ll need to update your BOI report within 30 days.
What Happens If You Don’t File?
It’s easy to overlook this requirement, but not filing your BOI report could lead to some serious consequences. These include:
Daily civil penalties of up to $500 for every day the report is late
Criminal penalties up to $10,000, or even jail time (up to 2 years), if the failure to file is willful or you provide false information
In short, it’s better to get it done sooner than risk penalties down the line.
How I Can Help
For most of you with a single-member LLC, this filing process is quick and painless. But if your business is a bit more complex, I’m happy to walk you through the process and answer any questions you might have. Don’t hesitate to reach out if you need assistance.
Disclaimer: None of this should be seen as advice. This is all for informational purposes. Consult your legal, tax, and financial team before making any changes to your financial plan.