What You Need to Know About the Beneficial Ownership Information (BOI) Report

Starting in 2024, all businesses will be subject to new federal regulations that require the filing of a Beneficial Ownership Information (BOI) report. This mandate is part of the U.S. government's efforts to increase business transparency, combat money laundering, and curb tax evasion. If you're a business owner—whether a small LLC or a large corporation—this is an essential requirement you cannot afford to ignore.

The BOI report discloses individuals who own or control a business, providing important information about the company's "beneficial owners." Here's a breakdown of what it is, why it's important, and how you can ensure compliance.

What Is a BOI Report?

A BOI report identifies the beneficial owners of a company—those who directly or indirectly own or control the business. This includes anyone with significant ownership interest or substantial control over the company. The goal is to bring transparency to business ownership, helping regulatory agencies track who is behind U.S. companies.

For most businesses, the beneficial owners listed in the report are typically individuals with at least 25% ownership or those with the authority to make major decisions for the company. This could include company directors, officers, or senior management.

Who Must File?

Most businesses formed in the U.S., including corporations, limited liability companies (LLCs), and other similar entities, are required to file a BOI report.

Businesses formed after January 1, 2024, must submit their BOI report within 30 days of registration, while existing companies have a deadline of January 1, 2025.

Even if you believe you fall outside this mandate, it's crucial to verify whether your business qualifies for an exemption. Otherwise, failing to file or update your report could result in severe penalties.

Why Is It Important?

The BOI report is a vital step in the government’s fight against illicit financial activities. By ensuring transparency in business ownership, it helps regulatory bodies identify suspicious activities and prevent money laundering, tax evasion, and other financial crimes.

For businesses, complying with BOI reporting requirements is also about establishing trust with customers, partners, and regulators. A clear record of beneficial ownership can reassure clients and investors that your business operates with integrity.

When and Where to File?

If your business was created in or before 2024, you must file your first BOI report by January 1, 2025. Newly formed businesses after January 1, 2024, must file within 30 days of registration.

All BOI reports are submitted electronically through the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. The online system will guide you through the steps of filing your report, but this is where many businesses face challenges with ensuring their information is accurate and timely.

What Happens if You Don’t File?

The consequences for missing the BOI report deadline or failing to provide accurate information can be severe. Civil penalties will be imposed for late filings, and more serious consequences—including criminal charges—may apply for willful non-compliance.

Don’t risk your business’s reputation or financial health by overlooking this important requirement. Act now to ensure your business remains compliant and avoid fines, criminal penalties, and potential imprisonment.

Updates to Your BOI Report

Business ownership can change quickly, and the BOI report must be updated to reflect any new information. If there are changes to beneficial ownership or company details, you must update your BOI report within 30 days. This requirement applies to all businesses, regardless of size or structure.

Failing to update your BOI report within the 30-day window could result in penalties. Stay on top of these updates to maintain compliance and protect your business.

Let Better Bookkeepers Handle Your BOI Filing

Navigating the intricacies of BOI filing can be daunting, especially when you already have countless other responsibilities on your plate. At Better Bookkeepers, we offer BOI reporting services to ensure you meet this requirement smoothly and on time. Whether you’re a small business owner or managing a larger corporation, our expert team is here to help.

Why Choose Us?

• Seamless Process: We handle everything from start to finish. No headaches, no guesswork—just accurate, timely filing.

• Compliance Experts: Our team stays up-to-date with the latest federal regulations and ensures your report is compliant with FinCEN requirements.

• Peace of Mind: With our services, you can rest assured that your business is protected from the hefty fines and penalties that come with non-compliance.

• Tailored Solutions: We understand that no two businesses are the same, and we’ll customize our approach to meet your specific needs.

Take Action Now

If you haven’t filed your BOI report yet, now is the time to act! Businesses formed in 2024 must file their report within 30 days of registration, while existing businesses have until January 1, 2025 to comply.

Don’t wait until the last minute. Missing the deadline or failing to update your BOI report could result in significant fines, criminal penalties, and even imprisonment in extreme cases.

At Better Bookkeepers, we offer BOI report filing services starting at $250 per business. Let our experienced staff take this task off your plate so you can focus on running your business.

How to Get Started

Contact us today to get started on filing your BOI report. Our expert team will handle the entire process seamlessly and ensure your business remains compliant.

If you are a current client and plan to file on your own please contact us to let us know! Or if you’re not a current client but would like to retain our services, also contact us so we can get started.

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By staying proactive with your BOI reporting, you can avoid penalties and focus on what matters most—growing your business. Contact Better Bookkeepers today to ensure your filing is handled with care and precision.