BOI: The new required form for (certain) Business Owners

In case you (or any business owners you know) haven't heard, there is a new requirement for individuals who own at least 25% of an LLC or Corporation.

Introducing the Beneficial Ownership Information (BOI) Report. 

What is this for?

In short, it’s a new form that certain business owners must fill out and file with the government.

The new requirement was spun out of the Corporate Transparency Act of 2021 to prevent against money laundering, fraudsters, who have used shell companies or other opaque ownership structures.

These reports will be monitored by FinCEN, which is a part of the US Treasury. 

Filing another form might feel like a burden, but it is quite simple and relatively painless to file (all through FinCEN's online portal).

Who must file (and when)?

If you meet any of the 3 scenarios below, you are required to submit a BOI report.

The report itself should only take ~10 minutes.

1. If you have an existing LLC or Corporation that was formed before 1/1/2024

Due: you have until 1/1/2025 to file the BOI Report.

2. If you form a new LLC or Corporation after 1/1/2024

Due: you have 90 days to file the BOI Report.

3. If you make any changes to an existing LLC or Corporation in 2024

Changes means: new owners, you drop an owner, you have an address or information change.

Due: 90 days (after the change) to report that to FinCEN.

What information is required to file a BOI report?

• Name, Birthday, Home Address, Driver’s License information

• Your Business info, Address, and EIN

• Any owner’s info they own >25%  

What happens if I do not file a BOI report?

The “willful failure” to report complete or updated BOI will result in penalties.

Civil penalties could be up to $500 for each day the violation continues. While criminal penalties could be more severe.

Conclusion

In my opinion, the filing requirements are simple and reasonable. If you have a few extra minutes, you should knock this task out and put it behind you.

Note that your CPA (tax preparer) may choose not to help you with this form, they may not want to assume its liability. You are better off completing on your own and keeping up with any updates over time.

More resources here:

• BOI information from FinCEN

• FinCEN to file your BOI