Chances are, your business now faces a new compliance requirement: FinCEN’s Beneficial Ownership Information reporting requirements, also known as BOI reporting.

What Is Beneficial Ownership Information Reporting?

Beneficial Ownership Information (BOI) reporting is part of the Corporate Transparency Act (CTA)—legislation Congress passed to crack down on illegal activity, including money laundering, corruption, and tax fraud. Proponents believe that increasing transparency in business ownership will help prevent criminals from hiding illegal gains, cash and other property in the U.S.

Who Needs to File a BOI Report?

The Corporate Transparency Act requires several types of businesses to file a BOI report, including corporations, limited liability companies (LLCs), and all other entities created by filing a document with the Secretary of State. There are a few exceptions that you can learn more about here.

What Is the Penalty for Not Reporting?

Businesses in existence as of January 1, 2024, must file their first report by January 1, 2025. Reporting companies formed after January 1, 2024, have 30 calendar days from the date they legally establish the business to file an initial report.

Failing to submit a BOI report on time could result in civil and criminal penalties. The civil penalty is $500 per day, and criminal penalties include up to $10,000 in fines, up to two years in prison, or both.

To learn more about who is exempt from the filing, what information is required, and how to best prepare for the reporting, check out our How to Prepare for FinCEN’s BOI Reporting Requirements blog post!

Step by Step Instructions for Filing your BOI Report

Disclaimer: This is not legal or tax advice. These are just the general steps for completing the BOI report for many small businesses with a single owner. Your business or situation may vary, so be sure to consult with your legal professional.

1. Go to FINCEN’s BOI E-Filing System and click “File BOIR”.
2. Click “Prepare & Submit BOIR” under File Online BOIR.
3. Under Type of Filing select “initial report” and click “Next”.
4. Select “Request to receive FinCEN ID”, input your business information and click “Next”.
5. Select “Existing reporting company” if your company was formed on January 1, 2024 or prior.
6. Enter in your personal information as the owner of your company and click “Next”.
7. Again enter in your personal information as the beneficial owner of your company and click “Next”.
8. Enter your email and name and click “Submit BOIR”.

Be sure to download your transcript to save for your records. And that’s it! Not too painful. If you need help figuring out whether your business has a reporting requirement, contact NewWay Accounting. We’re happy to be a resource as you prepare to report beneficial ownership information and navigate other compliance needs!