UPDATE 12/27/2024: Another appeal puts the BOI on hold. Aventi recommends businesses prepare to complete their filing requirements amidst the changes in this regulation.
12/26/2024:
The new Beneficial Ownership Information (BOI) filing requirement, recently suspended due to legal challenges, has been reinstated. For most businesses, the deadline is Monday, January 13, 2025.
BOI reporting, mandated by the Corporate Transparency Act (CTA), requires certain U.S. businesses to disclose information about their beneficial owners—the individuals who ultimately own or control the company. This measure aims to combat illicit activities such as money laundering and fraud by increasing transparency in corporate structures
Who Is Required to File?
The BOI reporting requirement applies to a broad range of entities, including corporations, limited liability companies (LLCs), and other similar entities created or registered to do business in the United States. However, there are 23 categories of entities exempt from this requirement, such as large operating companies meeting specific criteria, certain regulated entities, and inactive entities.
Key Deadlines
Existing Entities: Businesses created or registered before January 1, 2024, must file their initial BOI reports by January 13, 2025.
New Entities: Entities created or registered on or after January 1, 2024, are required to file their initial BOI reports within 30 days of receiving actual or public notice that their creation or registration is effective.
Information Required
Entities subject to BOI reporting must provide the following information about each beneficial owner:
Full Legal Name
Date of Birth
Residential Address
Unique Identifying Number from an Acceptable Identification Document (e.g., Passport or Driver's License)
Additionally, the reporting company must provide its legal name, any trade names, business address, and jurisdiction of formation or registration.
Penalties for Non-Compliance
Failure to comply with BOI reporting requirements can result in significant penalties. Civil penalties may include fines of up to $500 per day for each day the violation continues, adjusted annually for inflation, currently $591 per day. Criminal penalties can include fines up to $10,000 and imprisonment for up to two years.
Steps to Comply
Determine Applicability: Assess whether your business is subject to BOI reporting or qualifies for an exemption.
Gather Information: Collect the required information for all beneficial owners and company applicants.
File the Report: Submit the BOI report electronically through FinCEN’s secure filing system.
Update as Necessary: File updated or corrected reports within 30 days of any changes to previously reported information.
With the reinstatement of the BOI filing requirement and the January 13, 2025, deadline approaching, businesses should promptly assess their obligations and prepare to comply to avoid potential penalties.
For further information and resources, visit FinCEN and subscribe to Aventi Enterprises by visiting www.aventienterprises.com.