As the year-end draws closer, U.S. businesses face a significant new compliance requirement: Beneficial Ownership Information (BOI) reporting. This new federal mandate stems from the Corporate Transparency Act (CTA), aimed at increasing transparency and combating financial crimes.
Here’s what you need to know about BOI compliance, who it affects, and how to ensure your business is prepared.
What is BOI Compliance?
BOI compliance requires certain businesses to disclose detailed information about their beneficial owners—those who own or control the company. The Financial Crimes Enforcement Network (FinCEN) collects this information to prevent illicit activities like money laundering and tax evasion.
If you own a corporation, limited liability company (LLC), or similar entity, it’s likely you’ll need to file. Exceptions include large corporations with over 20 full-time employees and $5 million in annual revenue, certain nonprofits, and a few other exempted categories.
What Information Do You Need to Report?
BOI reports must include specific details about each beneficial owner:
- Full legal name
- Date of birth
- Residential address
- A government-issued ID number (e.g., driver’s license or passport)
For many small and medium-sized businesses, this may mean listing key stakeholders, such as majority shareholders or executives with significant control over the company. Accuracy is essential—errors or incomplete filings can lead to penalties.
Key Deadlines to Know
The BOI filing deadline for most businesses created before January 1, 2024, is December 31, 2024.
Businesses formed in 2024 or later must file their BOI report within 90 days of registration.
Missing these deadlines or submitting incorrect information can result in serious consequences, including:
- Fines up to $500 per day for late filings
- Potential criminal charges for intentional non-compliance
To avoid penalties, it’s crucial to understand whether your business falls under this requirement and to act promptly.
Why BOI Compliance Matters
The BOI requirement is designed to promote accountability in the business world, but for small business owners, it adds another layer of paperwork. Beyond the legal penalties, non-compliance could harm your company’s reputation. Submitting accurate and timely filings ensures your business remains in good standing and avoids unnecessary risks.
How Smith Patrick Can Help
With the holiday season approaching, the last thing you need is another compliance requirement weighing on your to-do list. Let Smith Patrick take care of the BOI filing for you! Our expert team will handle every step of the process, ensuring your report is accurate, complete, and filed on time.
Here’s why partnering with us makes sense:
- Time-saving service: We take care of all the documentation, so you can focus on your business.
- Accuracy guaranteed: We’ll double-check every detail to make sure your filing is error-free.
- Peace of mind: Rest easy knowing you’re protected from potential penalties.
At Smith Patrick, we know how to navigate these new compliance requirements (so you don’t have to). Let us step in, and you can get back to doing what you do best – running a successful business.
More Information
If you have questions, contact us to discuss your situation.
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Christian Stein
Christian leverages his 30-plus years of banking and finance experience as a Senior Accountant at Smith Patrick, specializing in business valuations, forensic accounting, and litigation support. With a deep understanding of finance and asset valuation, he provides crucial guidance to Smith Patrick clients, steering them through complex financial and legal situations.
About Smith Patrick CPAs
Smith Patrick CPAs is a boutique, St. Louis-based, CPA firm dedicated to providing personal guidance on taxes, investment advice and financial service to forward-thinking businesses and financially active individuals. For over 30 years, our firm has focused on providing excellent service to business owners and high-net worth families across the country. Investment Advisory Services are offered through Wealth Management, LLC, a Registered Investment Advisor.