Attention Business Owners: Comply with the BOI Reporting Requirement and Avoid Costly Penalties!
If you own a business in the U.S., it's crucial that you're aware of the new Beneficial Ownership Information (BOI) reporting requirement mandated by the U.S. Department of the Treasury. This regulation aims to increase corporate transparency, combat money laundering, and protect national financial security.
Under the Financial Crimes Enforcement Network (FinCEN), most businesses, including LLCs, corporations, and other types of entities, are now required to disclose information about their beneficial owners—those individuals who ultimately own or control the company.
Who is Required to Report?
Any domestic or foreign entity that is created, registered, or operating in the U.S. must file the BOI Report, with only a few exceptions. If you're a small or medium-sized business, it's very likely that this rule applies to you.
BOI Reporting Deadlines
For businesses formed or registered before January 1, 2024, the BOI report must be filed no later than December 31, 2024.
If your business is formed or registered after January 1, 2024, you must file the report within 30 calendar days of formation or registration.
Penalties for Non-Compliance
Failing to submit the BOI report on time can result in severe penalties, including:
Civil fines of up to $500 per day for every day the report is late or incomplete.
In serious cases, criminal penalties may apply, with fines of up to $10,000 and even up to two years of imprisonment.
Why This Matters for Your Business
Filing your BOI report is not only about avoiding penalties—it’s about maintaining the integrity of your business. In today’s financial environment, transparency is key to building trust with customers, investors, and regulators. Complying with this regulation also helps protect your business from being inadvertently linked to criminal activity such as money laundering or fraud.
Act Now to Stay Compliant
Don't wait until the last minute. Consult with your legal or financial advisor today to ensure your business meets this critical reporting requirement. Protect your company from unnecessary fines and potential legal trouble by submitting your BOI report on time.
. This content is based on the current regulations as outlined by FinCEN and the U.S. Department of the Treasury.
Sources:
U.S. Department of the Treasury
Interesting information! Thanks! 🙏