5 Critical BOI Filing Mistakes That Could Cost You Thousands (And How to Avoid Them)

When it comes to BOI filing under the Corporate Transparency Act, even small mistakes can lead to significant penalties. Here are the five most common pitfalls we're seeing businesses fall into – and more importantly, how you can avoid them.

1. Missing Filing Deadlines

The Mistake

Many businesses either don't know their deadline or miscalculate it. Remember:

• Existing businesses (pre-2024) must file by January 1, 2025
• New businesses have 90 days from formation
• Updates must be filed within 30 days of any change

The Solution

• Set multiple calendar reminders before your deadline
• Use BOISimply's automatic deadline tracking
• Don't wait until the last minute – systems may be overwhelmed
• Set up alerts for when changes occur in your business

2. Overlooking Indirect Beneficial Owners

The Mistake

Focusing only on direct owners while missing those who own the business through other entities or arrangements.

The Solution

• Map out your complete ownership structure
• Include:
  • Owners of parent companies
  • Trust beneficiaries
  • Joint ownership arrangements
• Calculate combined ownership percentages
• Document your ownership analysis

3. Incomplete Information Submission

The Mistake

Submitting partial or outdated information for beneficial owners:

• Missing middle names
• Old addresses
• Expired identification documents
• Incomplete business addresses

The Solution

• Use our pre-filing checklist:
  • Full legal name (including middle name)
  • Current residential address
  • Valid identification document
  • Date of birth
  • TIN or other identifying number
• Verify all information is current
• Keep copies of all supporting documents

4. Misidentifying Company Applicants

The Mistake

For businesses formed after January 1, 2024, failing to properly identify and report company applicants:

• Missing the person who filed formation documents
• Forgetting to include the person who first registered the business
• Incorrect information about either person

The Solution

• Identify both:
  • The individual who directly filed the documents
  • The individual who primarily directed the filing
• Gather their complete information upfront
• Document their roles in the formation process

5. Failing to Update Changes

The Mistake

Not filing updates within 30 days when:

• Ownership percentages change
• A beneficial owner's information changes
• New owners join the business
• Existing owners leave

The Solution

• Implement a change management process
• Create a system for tracking ownership changes
• Use BOISimply's update reminder system
• Assign someone to monitor changes
• Keep a change log for your records

How These Mistakes Can Cost You

The penalties for incorrect BOI filings are severe:

• Civil penalties: Up to $500 per day
• Criminal penalties: Up to $10,000
• Possible imprisonment: Up to 2 years

Best Practices to Stay Compliant

1. Create a Compliance Calendar
   • Mark all important deadlines
   • Set review periods
   • Schedule regular information updates
2. Maintain Proper Documentation
   • Keep digital copies of all filings
   • Store supporting documents securely
   • Track all ownership changes
3. Use Technology Wisely
   • Implement automated reminders
   • Use secure information storage
   • Utilize compliance tracking tools
4. Establish Clear Procedures
   • Create a filing checklist
   • Develop an update protocol
   • Assign responsibility for compliance

How BOISimply Helps You Avoid These Mistakes

Our platform helps prevent these common errors by:

• Automating deadline tracking
• Providing comprehensive checklists
• Sending timely reminders
• Securing your sensitive information
• Simplifying the update process

Next Steps

1. Review your current BOI compliance status
2. Check for any pending deadlines
3. Verify all owner information is current
4. Set up a proper tracking system
5. Consider using BOISimply to automate compliance

Don't let simple mistakes cost your business thousands in penalties. Stay ahead of your BOI filing requirements with proper planning and the right tools.