Upcoming Deadlines for Business Ownership Information (BOI) Reporting
The clock is ticking for businesses to meet the new BOI reporting requirements with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Here's what you need to know to stay compliant:
Key Deadlines
Existing Businesses: If your business was active as of January 1, 2024, you must file your BOI report by January 1, 2025.
New Businesses: Businesses formed in 2024 have 90 days from their formation date with the state’s Secretary of State to submit their BOI report.
Entities Required to File
All limited liability companies (LLCs) and corporations must file a BOI report. If you own multiple LLCs, each one requires its own BOI filing, even if they share ownership or management structures.
Penalties for Non-Compliance
Failure to file on time can result in severe penalties:
Daily Fines: $591 per day until filed
Criminal Penalties: Up to $10,000 in fines and potential imprisonment for up to two years.
Avoiding these penalties is essential for maintaining good standing and protecting your business interests.
Recent Updates from FinCEN
Inactive or Dissolved Businesses: Companies that ceased operations and completed the dissolution process before January 1, 2024, are exempt from BOI filing.
Active but Dissolved Businesses: Companies created on or after January 1, 2024 must file a BOI report, even if they later dissolve before the reporting deadline.
These updates help clarify the filing obligations for businesses in varying stages of operation or dissolution.
Special Considerations for Disregarded Entities
Disregarded entities for U.S. tax purposes (e.g., single-member LLCs) must also file a BOI report. A valid taxpayer identification number (TIN), such as an EIN, SSN, or ITIN, must be provided with the BOI report for compliance.
Keeping track of these BOI reporting requirements can help avoid costly penalties and ensure your business remains in compliance with FinCEN regulations. Feel free to reach out to our team if you need assistance with filing or have questions about these new requirements.