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divorce, or obtains a new driver’s license, it may require an update to a company’s BOI report. If the company makes management changes that give a new person control of the business, the company could be required to update its filings even if the person performing those duties does not own equity in the business. The timeline to report changes can be as short as 30 days. What are the deadlines for filing? Reporting Companies formed prior to Jan. 1, 2024, must file their initial BOI report on or before Jan. 1, 2025. Reporting Companies formed between Jan. 1, 2024 and Jan. 1, 2025 must file within 90 days from the earlier of notification or public announcement of their formation. Reporting Companies formed after Jan. 1, 2025 will have 30 days to file their BOI report. Formerly exempt companies that are no longer exempt must file their initial BOI report within 30 days after the date the exemption no longer applies. What are the penalties for noncompliance? Penalties for individuals who willfully provide or attempt to provide false or fraudulent information or who willfully fail to report complete or updated information face penalties for non-compliance of $500 per day up to a maximum of $10,000 and imprisonment of up to two years. Where can business owners get help with their BOI reports? If you opt to file your own BOI report, here is what you will need to do: 1. Determine if your business is required to file. The CTA says that LLCs and corporations must file beneficial ownership information reports unless they qualify for an exemption. 2. If your business must report, list its beneficial owners, which are any individuals who own or control 25% of the company or otherwise exercise substantial control as defined in the CTA. If you are unsure if an individual must be listed as a beneficial owner, consult with a legal professional. Once you have identified the beneficial owners, let them know
that the CTA requires your business to report their personal information to FinCEN. 3. File your report online. Access to the filing portal can be reached at boiefiling.fincen.gov/fileboir . 4. Prepare for updates. Keep all personal information organized, secure, and current. In addition to your initial report, you will need to file updated reports should there be a change in personal information or beneficial ownership. While companies have the option to file their own BOI reports, it is recommended that they consider consulting a knowledgeable advisor, such as an attorney, when filing the initial and/or updated BOI reports to make sure they are completed on time and to FinCEN’s standards. Otherwise, with everything a small business owner is already doing to operate a successful business, the BOI report could be filed late or not completed properly. In addition, there are some issues in the law that could require an interpretation of certain facts to determine who is a beneficial owner that must be included in the filings. If this happens, an attorney to help the company decide how its set of facts fits within this law. If you have questions about the Corporate Transparency Act, give us a call!
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