Why File My Beneficial Ownership Information (BOI)?

Firstly, it’s mandatory…and secondly, you can be fined if you don’t! The BOI filing is part of the Corporate Transparency Act (CTA), aimed at increasing transparency in business operations to combat financial crimes like money laundering and fraud. By reporting beneficial ownership, businesses help create a more transparent financial environment.

What BOI Filing Entails:

Required Information:

Full Corporate Name: The legal name of the business entity.
Employer Identification Number (EIN): A unique number assigned to the business for tax purposes.
Government ID: Such as a passport or driver’s license for each beneficial owner, to verify identity.

Filing Deadlines

For Companies created or registered before January 1, 2024:

The deadline to file the initial BOI report is January 1, 2025

For companies created or registered in 2024:

They have 90 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial BOI report

For companies created or registered on or after January 1, 2025:

They will have 30 calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial BOI rep

Consequences of Non-Compliance:

Failing to comply with the BOI filing requirements can result in significant penalties, including fines and legal action. Non-compliance may also damage a company’s reputation and hinder its ability to conduct business effectively.

Preparing for BOI Filing:

Gather Necessary Information:
- Ensure all required details about the business and its beneficial owners are accurate and up-to-date.
Use the BOI E-Filing System:
- Submit the required information electronically through the BOI E-Filing System.
Consult Professionals:
- Consider seeking advice from legal or financial professionals to ensure all aspects of the filing are correctly handled.

This blog does not constitute formal legal advice and does not address state or local law. Although we can’t file this for you, APlus is here to guide you should you get ‘in the weeds’ on this. Have a question on your payroll? Ask us. Advice is always free!