November 29, 2024

Business Owners Need to File Their Beneficial Ownership Information (BOI) Report NOW.

As a self-employed individual or business owner, you’re likely familiar with the many responsibilities that come with running your own entity. One critical requirement that many business owners may have overlooked in 2024 is filing the Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). Missing this deadline could lead to serious penalties, including fines of up to $591 per day!

Figure 1

What Is the BOI Filing?

The BOI filing is part of the Corporate Transparency Act (CTA), enacted to fight against illicit financial activity like money laundering, terrorism financing, and tax fraud. It requires certain entities to disclose information about the individuals who own or control the business.

The report provides FinCEN with the following details about beneficial owners (those who own at least 25% of the entity or exercise significant control):

Full legal name
Date of birth
Current residential or business address
A unique identifying number from a government-issued ID (e.g., passport or driver’s license).

Why Is It a Requirement?

The CTA was passed in 2020 as part of a broader effort to increase transparency in business dealings. Prior to the CTA, shell companies could easily be set up anonymously, making them a prime vehicle for criminals. By requiring BOI filings, the U.S. government aims to deter these activities and strengthen the integrity of the financial system.

Screenshot of the title of H.R. 6395––1217, also known as the Corporate Transparency Act

Figure 2

Who Needs to File?

The BOI filing requirement applies to nearly all small businesses and entities formed or registered in the U.S., including:

LLCs
Corporations
Partnerships
Other entities created through state filing processes.

However, certain larger entities or those already heavily regulated (e.g., publicly traded companies or financial institutions) are exempt. Even if you own a side business that generates $1,000 a year, you still will need to file.

When Is the Deadline?

For entities formed on or after January 1, 2024, the BOI must be filed within 30 days of registration. For those established before January 1, 2024, the deadline is January 1, 2025. Filing early is advised to avoid last-minute issues that could cause hefty penalties.

How to File

Prepare your information: Gather the necessary details about beneficial owners and the business entity.
Submit the BOI report: Filing will be done electronically through FinCEN’s secure reporting system. Instructions will be available on the FinCEN website.
https://boiefiling.fincen.gov/ – use this link to use the BOI E-Filing System

Screenshot of the BOI E-Filing system webpage

Figure 3

Act Now

While this may feel like “just another requirement,” the BOI filing is about protecting your business and contributing to a more transparent and secure financial ecosystem. Whether you agree with it or not, prompt compliance ensures you avoid racking up high fines!

Have questions about whether or not you need to file? Need help filing your BOI report? Reach out to us with our Ask the Experts feature. We’re here to help!

Disclosure

Apollon Wealth Management, LLC dba Tree City of Apollon (Apollon) is an investment advisor registered with the SEC. This document is intended for the exclusive use of clients or prospective clients of Apollon. Any dissemination or distribution is strictly prohibited. Information provided in this document is for informational and/or educational purposes only and is not, in any way, to be considered investment advice nor a recommendation of any investment product or service. Advice may only be provided after entering into an engagement agreement and providing Apollon with all requested background and account information. When making any tax or legal decisions clients should always seek out specific professionals such as legal counsel or a CPA. This piece is provided for information only and is in no way tax advice. While every effort has been made to ensure accuracy, only the IRS tax code itself should be considered official. Apollon does not file taxes for any clients. Please visit our website http://apollonwealthmanagement.com for other important disclosures.

Figure 1. FinCEN Logo. Wikimedia Commons, https://commons.wikimedia.org/wiki/File:FINcen_Treasury_Logo.svg. Accessed 11/22/2024.

Figure 2. Screenshot of first page of H.R. 6395––1217. FinCEN, https://www.fincen.gov/sites/default/files/shared/Corporate_Transparency_Act.pdf. Accessed 11/22/2024.

Figure 3. Screenshot of page to file BOI on FinCEN’s website. FinCEN, https://boiefiling.fincen.gov/. Accessed 11/22/2024.

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