At J&R Marketing, we work with businesses of all sizes, from startups to established companies, and we understand the challenges of staying on top of changing regulations. That’s why we want to make sure you’re aware of an important new filing requirement: Beneficial Ownership Information (BOI) reporting. While it may sound complicated, the process is actually quite simple—and we’re here to help.
To make this as easy as possible, we’ve created a 6-minute video guide that walks you through the BOI filing process step by step. If you’re short on time, start with the video—it’s designed to answer your questions quickly and clearly.
For those who prefer to read or want more details, we’ve broken everything down below. Keep reading to learn what the BOI report is, why it’s required, and exactly how to file it.
What Is a Beneficial Ownership Information (BOI) Report?
The BOI report is a filing with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department. Its purpose is to collect information about the individuals who ultimately own or control companies operating in the U.S. This includes:
- Corporations
- Limited liability companies (LLCs)
- Foreign companies registered to do business in the U.S.
The report was introduced under the Corporate Transparency Act (CTA), which aims to curb illicit financial activities like money laundering and terrorism financing by increasing business ownership transparency.
Why Is It Required?
Enacted in 2021, the CTA focuses on businesses that previously didn’t have to disclose ownership details, particularly smaller entities. While large corporations often report this information through other federal filings, this law ensures a consistent and uniform process for smaller businesses.
Who Needs to File?
You may need to file if your business is:
- A corporation, LLC, or other entity created in the U.S. by filing a document with a state or tribal office.
- A foreign company registered to do business in the U.S. through similar filings.
Exemptions
Certain entities, such as banks, tax-exempt organizations, and publicly traded companies, are exempt from this requirement. You can review the full list of exemptions in FinCEN’s Small Entity Compliance Guide.
What Information Do You Need?
Filing is straightforward and requires only a few details:
About Your Company:
- Legal name
- Trade names (if any)
- Address
- Jurisdiction of registration
- Taxpayer Identification Number (TIN)
About Beneficial Owners:
- Full name
- Date of birth
- Residential address
- Identification document (e.g., passport or driver’s license)
Filing Deadlines
Here’s when you need to file:
- Existing companies (registered before January 1, 2024): File by January 1, 2025.
- Newly registered companies in 2024: File within 90 days of registration.
- Companies registered after January 1, 2025: File within 30 days of registration.
If you need to update or correct information, you must do so within 30 days.
How to File
The process is secure, free, and user-friendly. Here’s what to do:
- Visit the FinCEN BOI E-Filing System.
- Gather the required information about your company and beneficial owners.
- Complete and submit your report.
For most companies with simple ownership structures, filing takes less than 20 minutes.
What Happens If You Don’t File?
Failure to file can result in:
- Civil penalties: Up to $591 per day of non-compliance.
- Criminal penalties: Fines up to $10,000 and/or imprisonment for up to two years.
It’s essential to file on time to avoid these costly consequences.
Why This Matters
At J&R Marketing, we’re committed to helping businesses navigate complex challenges like these. Filing your BOI report isn’t just about avoiding penalties; it’s about contributing to a safer and more transparent financial system. By taking the time to comply with this requirement, you’re strengthening your business and supporting efforts to combat illicit finance.
Additional Resources
Navigating new requirements like BOI reporting can feel overwhelming, but you don’t have to do it alone. Here are some trusted resources to help you along the way:
These tools provide detailed guidance and answers to common questions to ensure you’re on the right track. If you still have questions or need clarification, FinCEN’s Contact Center is available to assist you.
Disclaimer:
The information provided in this blog post is for general informational and educational purposes only and should not be considered legal, financial, or professional advice. While we strive to ensure the information is accurate and up-to-date, it may not reflect the most current legal or regulatory developments.
We recommend consulting with a qualified attorney, accountant, or other professional for advice tailored to your specific business needs or circumstances. J&R Marketing is not responsible for any actions taken based on the information provided in this post.
For official guidance on Beneficial Ownership Information (BOI) reporting, please refer to the FinCEN website.
