The BOI Countdown: Why Every Business Owner Needs to Report by December 31st

If you’re a business owner, you're REQUIRED to report your Beneficial Ownership Information (BOI) to the U.S. Department of Treasury via the FinCen BOI E-Filing System by the end of the year.

The penalties for not doing it are $591 daily!

Let’s dive into what BOI is, why it’s critical, and how you can dodge those egregious daily penalties.

What is BOI Reporting?

It’s no longer enough to file your LLC or Corporation documents with the state—now the federal government wants a say.

The Corporate Transparency Act was created to combat money laundering, terrorism financing, and other illegal financial activities.

By requiring businesses to disclose ownership and control information, Congress wants to bring more clarity to corporate structures.

For most business owners, especially those who are hands-on with their operations, this might feel like just another task on an already full plate.

And maybe it is...

The problem is the punishment for not abiding by the requirement is enormous.

Why This Matters to You

If you’re a business owner, the requirement isn’t optional, and neither is the penalty for non-compliance.

I’ll break down three key points you need to know about the BOI filing requirements.

• Who Needs to Report?

• What’s the Deadline?

• What’s at Stake?

1. Understanding Who Needs to Report

First up: the Reporting Company.

In a nutshell, this includes most LLCs, corporations, and similar entities, except for a few exempt categories like large, public companies.

Reporting companies must disclose:

• Legal name of the business

• EIN (Employer Identification Number)

• State of formation (e.g., Michigan)

• Business address

2. The Role of Company Applicants and Beneficial Owners

For BOI reporting, there are two crucial roles to keep in mind: Company Applicant and Beneficial Owner.

Company Applicant: This is the individual or entity that files the BOI report. If you’re doing the reporting yourself, that’s you. If you hire me or someone else to handle it, I (or they) would be the Company Applicant.

FinCen requires details including:

• Legal name

• Date of birth

• Address

• A unique identifier (driver’s license, passport, etc.)

• An image of the identification document

Beneficial Owners: This term applies to anyone who owns 25% or more of the business or has substantial control. If your business has multiple owners or another business as an owner, each qualifying individual must be included in the BOI report.

To meet the BOI requirements, you’ll need to provide:

• Legal name

• Date of birth

• Address

• A unique identifier (driver’s license, passport, etc.)

• An image of the identification document

The reporting burden may be significant if you have multiple beneficial owners, but compliance is critical.

Failure to include even one beneficial owner could result in penalties.

3. Penalties and the Importance of Timely Filing

Missing the December 31, 2024 deadline results in a daily fine of $591.

A 10-day delay could mean a penalty of nearly $6,000!

The penalty is completely avoidable.

The BOI report is required once, with updates only needed if there’s a major change, such as adding a new owner who qualifies as a beneficial owner.

If a change occurs, you must update your BOI report within 30 days—another critical deadline to keep on your radar.

Ready to File? Here’s How to Get Started

Filing the BOI report isn’t rocket science, but it does require some attention to detail.

The easiest way to tackle this is to gather your information and set aside some time to complete the process on the FinCen E-Filing System.

However, if you’d rather not handle this alone, my team and I can step in to ensure your filing is timely and accurate.

TL;DR

• Who Must File: Almost all LLCs, corporations, and similar entities not exempt under the law.

• Who’s Responsible: Reporting Companies, Company Applicants, and Beneficial Owners must provide detailed information.

• Deadline: December 31, 2024.

• Penalties: $591 per day for late filing.

• Updates: BOI reports need updating if a significant change in ownership occurs (within 30 days).

Are You Prepared?

Now is the time to act.

Missing this deadline or underreporting could cost your business thousands.

Let's Talk...

What do you think about this new requirement?

Do you believe it’s fair for businesses to face such steep fines?

Let me know your thoughts—drop a comment below, and if you need me to take care of your BOI reporting needs, shoot me a DM!