Why the BOI Report Matters
This requirement comes from the Corporate Transparency Act (CTA), which aims to crack down on financial crimes like money laundering, tax evasion, and fraud. Essentially, the CTA is all about shedding light on who really owns and runs businesses in the U.S.
For more information about the Corporate Transparency Act (CTA) and BOI Reports, check out the FAQ page from FinCEN here.
Who Needs to File a BOI Report?
Most U.S. corporations and LLCs need to file a BOI Report, but there are some exceptions.
You May Be off the hook if your company meets all three of these criteria:
- You have 20+ employees.
- Your gross receipts exceed $5 million.
- Your business has a physical office in the U.S.
- Other entities, like publicly traded companies, banks, credit unions, SEC-reporting businesses, and certain nonprofits, are also exempt.
Heads-up: If your business doesn’t fall into one of these exempt categories, you’re required to file, whether it’s a new company or one that’s been around for years. Not sure if you qualify? Check the CTA requirements or chat with a legal expert.
What Information Goes in a BOI Report?
Here’s the rundown of what you’ll need to include:
Company Details:
- Legal name and any trade names (DBAs).
- Company address.
- Where the business is registered (U.S. or foreign).
- Taxpayer ID number.
For Beneficial Owners and Company Applicants (for businesses formed after January 1, 2024):
- Full legal name.
- Birthdate.
- Home address.
- ID info from an approved document (like a driver’s license or passport), plus a copy of that document.
When Are Reports Due?
The deadline depends on when your business was formed:
Before January 1, 2024: File by January 1, 2025.
On or after January 1, 2024: File within 90 days of forming or registering the business.
Why You Can’t Skip This
Missing the deadline could mean big fines—or even criminal charges. If your business doesn’t meet the exemption criteria, this filing isn’t optional.
How to File Your BOI Report
FinCEN has an online system where you can submit your report directly, or you can upload a PDF.
Need some extra help? IncEasy has partnered with FileForms, a third-party service that can guide you through the process. This is especially helpful if you have multiple beneficial owners who want to submit their personal details separately.
Stay Ahead of the Deadline
Gathering the required info and filing your report might take a little effort, but it’s worth it to avoid potential penalties. Staying compliant keeps your business in good standing and saves you unnecessary stress down the road.
Being proactive now means less hassle later—your future self will thank you!
For more details about other essential next steps after you form your LLC, visit our blog post here.