BOI Filing 101: Your Complete Guide to the Corporate Transparency Act

The Corporate Transparency Act (CTA) has introduced new reporting requirements that affect millions of small businesses across the United States. If you're a business owner trying to navigate these new regulations, you're not alone. This guide will break down everything you need to know about Beneficial Ownership Information (BOI) filing in clear, simple terms.

What is BOI Filing?

BOI filing is a new federal requirement that mandates certain companies to report information about their beneficial owners – the individuals who ultimately own or control the business – to the Financial Crimes Enforcement Network (FinCEN). This requirement stems from the Corporate Transparency Act, which aims to enhance transparency and prevent illegal activities like money laundering and fraud.

Who Needs to File?

Your business likely needs to file if it's:

• A corporation
• A limited liability company (LLC)
• Any other entity created by filing documents with a secretary of state or similar office

However, there are important exceptions. Your business might be exempt if it:

• Has more than 20 full-time employees
• Reports over $5 million in gross annual revenue
• Has a physical office in the United States

What Information Do You Need to Report?

For each beneficial owner, you'll need to provide:

• Full legal name
• Date of birth
• Current residential address
• Unique identifying number (such as a passport or driver's license number)
• An image of the document containing the identifying number

Key Deadlines to Remember

• Existing businesses (created before January 1, 2024) must file by January 1, 2025
• New businesses (created after January 1, 2024) must file within 90 days of formation
• Updates to information must be filed within 30 days of any change

How to Prepare for Filing

1. Identify Your Beneficial Owners
   • List all individuals who own 25% or more of the company
   • Include individuals who exercise substantial control
   • Document their required information
2. Gather Required Documents
   • Collect identification documents
   • Ensure all information is current and accurate
   • Keep copies for your records
3. Plan for Compliance
   • Set up a system to track changes
   • Mark important deadlines on your calendar
   • Consider using a filing service to ensure accuracy

Penalties for Non-Compliance

It's crucial to take these requirements seriously. Failing to file or providing false information can result in:

• Civil penalties up to $500 per day
• Criminal penalties up to $10,000
• Potential imprisonment for up to two years

How BOISimply Can Help

Filing BOI reports doesn't have to be complicated. BOISimply offers:

• Step-by-step guidance through the filing process
• An easy to use filing form
• Manual review to ensure your filing is compliant
• Easy updates when information changes
• Expert support when you need it

Next Steps

1. Determine if your business needs to file
2. Begin gathering required information
3. File with BOISimply for a seamless filing
4. Reach out to our support team with any questions

Remember, staying compliant with BOI requirements is an ongoing responsibility. By understanding these basics and setting up proper systems now, you can ensure smooth sailing for your business's compliance future.