Have you heard the news? There is a new registration for small business owners called the Beneficial Ownership Information Report (BOI).  It’s an easy form to fill out online at FINCEN.gov, it’s free and takes about 10 minutes of your time. If you aren’t already familiar with it, you might have some questions about what exactly it is, why do we need to file, and who needs to file this Beneficial Ownership Report?

Let’s start at the beginning with who is FINCEN?

FINCEN is the Financial Crimes Enforcement Network. The bulk of their job is to prevent money laundering and the funding of terrorism and to further national security. They are a part of the US Department of Treasury and work primarily as a bridge between banks and law enforcement. 

Back in 1970, the Bank Secrecy Act was passed which was the first time banks really had to create and adhere to internal controls to actively stop money laundering. In 2001 the Patriot Act was passed requiring banks to verify the individuals opening accounts. Both sets of regulations established obligations for Banks to report suspicious activity, in particular with cash transactions. 

FINCEN has been around as an organization since the 90s as a regulatory agency which helps consolidate these suspicious bank reports, providing the financial trail for investigators within various law enforcement agencies. 

Fast forward to 2022 when the federal government passed the BOI regulations. In a nutshell, the BOI Reporting is designed to further identify criminals that are carrying out their financial crimes through the use of businesses. Known criminals who would be flagged if they open a bank account with their personal information had found a loophole by opening accounts in a business name. Amongst other things, the BOI Reporting is there to close this loophole.

What does this mean for us, as business owners?

Every business owner is now required to file the BOI Report online at FINCEN.gov if you fall into the following criteria:

• Have 25% or more ownership in a business
• Are a corporation or  limited liability company (LLC/LLP) 
• Are a sole proprietor IF documents are filed with the Secretary of State or similar
• Are a foreign company registered to do business anywhere in the US

How do we file?

First- there are many companies out there that are trying to charge you upwards of $300-$400 to file. This is not necessary. You do not need to pay, you do not need a lawyer, accountant, CPA or anyone else to file for you.

You can go to FINCEN.gov and file for free. It takes about 10 minutes to do. You will need the following information to file:

• Name of Business
• Tax ID SSN/ITIN
• Current Address
• ID: Driver’s License or Passport

What is the deadline to file:

• If you have an existing business (prior to January 2024) you will need to file before January 1, 2025
• If you have a new business (formed in 2024) you have 90 days to file based on your effective date.
• If you will create a business after January 1, 2025, you will have 30 days to file from your effective date.
• Unless there is an update or correction, you only have to file once. Any updates or corrections must be filed within 30 days. 

For more information, or if you have questions, there are many helpful resources and a quick video tutorial on how to file on the FINCEN.gov website. There are steep fines of up to $500 per day if you do not file by your deadline. While I can’t file the BOI Report for you, I can point you in the right direction of how to get it done.

Schedule a free discovery call with me and we will talk reporting requirements, goals and other strategies to help your business grow to the next level!