Given the ever-growing importance of corporate transparency, filing the beneficial ownership information before the BOI filing deadlines has gradually become one of the high-priority compliance requirements for many business enterprises in the United States. Companies have to file BOI reports with FinCEN, as stated by the Corporate Transparency Act.
Among the most important moments within this process is being informed about and not missing the filing deadline. These dates come along with fines and penalties for those missing these deadlines; hence, one must understand when and how to file.
What is BOI Filing?
Before going into the BOI filing deadlines, it is important to first understand exactly what BOI filing means. BOI reporting is the reporting of the business entity’s “beneficial owners,” owners or controllers of a substantial amount of interest in such a business.
This helps in making the registry transparent to the government to aid and combat fraud, money laundering, and other financial crimes. It is to be provided by the companies, including the names, addresses, dates of birth, and identifying numbers of the beneficial owners, such as a passport or driver’s license.
Key BOI Filing Deadlines
The Corporate Transparency Act outlines the BOI filing deadlines. It applies to both new entities and those that already exist. Here is everything one needs to know about it:
- New Entities: New businesses or entities registered after January 1, 2024, get 90 days after their incorporation to report the required beneficial ownership information to FinCEN.
- Existing Entities: The deadline for companies existing before January 1, 2024, is different though. These should file their BOI reports by January 1, 2025. This means they now have less than four months.
- Changes in Beneficial Ownership: In case there is any change in the beneficial ownership of your company since the date of filing, e.g., a new owner, change in control, or personal information regarding an existing owner has changed, have to report to FinCEN within 30 days.
What Happens if You Miss the BOI Filing Deadline?
Failure to file the BOI before the BOI filing deadlines may result in serious penalties. FinCEN has the powers for both civil and criminal fines in case of any failure to comply.
Civil penalties may include fines of up to $500 per day until the required information is filed. Criminal penalties, which may be applied in the case of willful failure to report international transactions, could involve fines of as much as $10,000 and even imprisonment for as long as two years.
How to Ensure You Meet BOI Filing Deadlines
Basically, there are a number of ways by which companies can avoid delays in filing with BOI on time, including:
1. Developing a Compliance Calendar
Use a compliance calendar to note the due dates of all BOI filings. For this purpose, there should be an initial filing and follow-up updates due to some change in the ownership structure, along with any other event obligating filing compliance for BOI reporting.
2. Automate Reminders:
Schedule automatic reminders or notifications to when the deadlines approach. This way, you will not be late, as you have had it scheduled in advance through email, an internal system, or compliance software.
3. Assign Responsibility:
Appoint a compliance officer or team to be in charge of keeping track and filing BOI. Having a person or team at the helm with regard to the BOI reporting will avoid missing deadlines.
4. Seek Professional Guidance:
Consult with legal or compliance experts for any business that is doubting its obligation or the technicalities in filing. That will give guidance on the requirements for your business to remain compliant.
For More Details: Reach Out to BOIFinCEN Reporting for more details and information.
Conclusion
One critical component of compliance for the Corporate Transparency Act involves the due dates for the BOI filings.
Whether your entity is new and must file within 30 days of formation, your company already exists and you have a year to comply, or your business faces a change of ownership, due dates are of the essence to avoid penalties.
Your business can make it easy to meet the BOI filing deadlines by staying organized, setting reminders, and making sure someone is responsible for compliance.
