Deadline Alert: Time’s Running Out for BOI Reporting!
The clock is ticking for businesses required to submit their Business Ownership Information (BOI) reports to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Missing this filing deadline could result in significant penalties, so let’s break down what you need to know to stay compliant.
Important Deadlines
Existing Businesses as of January 1, 2024: Must file their BOI report by January 1, 2025.
New Businesses Formed in 2024: Have 90 days from their registration date with the Secretary of State to submit their BOI report.
Who Needs to File?
All limited liability companies (LLCs) and corporations are required to file. If you own multiple LLCs or corporations, note that each entity needs its own separate BOI report.
Potential Penalties for Non-Compliance
Failure to submit your BOI report on time can lead to serious consequences:
Daily fines of up to $591 per day for each missed day
A potential criminal penalty of $10,000
Risk of up to two years in prison
It’s crucial to take this deadline seriously to avoid these hefty fines and legal implications.
Latest FinCEN Updates
FinCEN recently clarified some key points to help businesses understand their obligations:
Dissolved Companies: Businesses that ceased operations before January 1, 2024 and completed the dissolution process are not required to file a BOI report.
Newly Dissolved Companies in 2024 or Later: If your business was created or still operational as of January 1, 2024, and ceased operations afterward, you’re still required to file a BOI report.
Special Note for Disregarded Entities
Disregarded entities, as defined for U.S. tax purposes, also fall under the BOI reporting requirement. These entities must file using a valid taxpayer identification number (TIN), such as an EIN, SSN, or ITIN.
With the deadline fast approaching, now is the time to prepare and file your BOI report to avoid penalties. Don’t let time slip away—make sure your business is compliant with FinCEN’s regulations today! Visit FinCEN’s website to learn more and file your report.
It will be your exclusive responsibility to comply with CTA, including its BOI reporting requirements. Information can be found at fincen.gov/boi. Please consult with legal counsel on additional questions and or concerns regarding how BOI reporting requirements and issues affect your company.
Finally, we wish to emphasize that we are providing you with this information to make you aware of these new current reporting requirements, associated risks, and suggest you contact legal counsel to assist you with the CTA and related BOI filings for entities that you own or control.
