If you are a small business owner, you may have heard of the new rule issued by the Financial Crimes Enforcement Network (FinCEN) in 2023, which requires certain businesses to file a BOI report to help FinCEN combat money laundering, tax evasion, and other financial crimes.
However, you may be wondering: what exactly is a BOI report, and does your business have to file one?
Below, we will answer these questions and explain how Jurado & Associates, P.A. can help you with your FinCEN compliance needs.
What is a BOI Report?
A beneficial ownership information (BOI) report is a form that collects information about the beneficial owners of a business. A beneficial owner is a person who:
- Owns or controls 25% or more of the equity interests of the business, or
- Exercises substantial control over the business.
A BOI report must include the following information for each beneficial owner:
- Full name
- Date of birth
- Address
- Identification number (such as Social Security number or passport number)
Who Has to File a BOI Report?
The BOI reporting rule applies to any business that is:
- A corporation, limited liability company, or other similar entity
- Created by filing a document with a secretary of state or a similar office under the laws of any state or foreign country
- Registered to do business in the United States
The rule does not apply to entities that are already subject to federal regulation, such as banks, credit unions, securities brokers, insurance companies, etc.
When and How Must Businesses File a BOI Report?
If your company was created or registered before January 1, 2024, you need to file your BOI report by December 31, 2024.
However, if your company was created or registered on or after January 1, 2024, you need to file your BOI report within 90 days of receiving notice that your company’s creation or registration is effective.
After January 1, 2025, the deadline will be reduced to 30 days for all new companies.
The BOI report must be filed electronically through FinCEN’s website, using a secure login and password. The BOI report is confidential and will not be publicly disclosed, except to authorized law enforcement agencies or regulators.
What are the Penalties for Failing to File a BOI Report?
Failing to file a BOI report, or filing a false or incomplete report, can result in civil and criminal penalties. The civil penalty is up to $500 per day for each day the violation continues. The criminal penalty is up to $10,000 and/or up to two years in prison for each violation.
Additionally, failing to file your BOI report can expose your business to increased scrutiny and audits by FinCEN and other authorities.
Jurado & Associates, P.A. Can Help You
As you can see, filing a BOI report is not a simple task. It requires a thorough understanding of the rule, its definitions, and its exceptions. It also requires careful collection and verification of the required information and timely submission of the report.
If you are not sure whether your business has to file a report with FinCEN, or if you need assistance with the filing process, you should consult a professional legal advisor.
At Jurado & Associates, P.A., our lawyers specialize in FinCEN compliance. We have the experience and expertise to help you with your BOI reporting obligations and to protect your business from any potential risks or liabilities.
If you are a small business owner who needs to file a BOI report, or if you have any questions or concerns about FinCEN compliance, do not hesitate to contact us today.
You can reach us by phone at (305) 921-0976, by email at [email protected], or by WhatsApp at +1 (305) 921-0976.
We will make the BOI reporting process easy and stress-free for you. Contact us today and let us take care of your BOI report so you can focus on your business.
