Taking the Mystery out of the BOI--What You Need to Know about Beneficial Owner Information and How to Stay in Compliance with this New Federal Business Requirement
- smini18
- Aug 29, 2024
- 5 min read
Updated: Oct 19, 2024
***IMPORTANT UPDATE: If you receive a text or email asking you to file your BOI by clicking on a link, DO NOT CLICK THE LINK! IT IS A SCAM!
Read below to learn more.***
“BOI?!? What’s a BOI???”
I thought the same thing too when I first heard about this new requirement from my business attorney. With all the many reports, filings, and deadlines involved with running a business, I cringed at the thought of having to file yet one more document for my business.
But worry not! In this post, I will walk you step by step in learning more about what this new federal requirement is for businesses, what to expect, and how to go about filing the necessary information to stay in compliance.
“So what exactly is a BOI?”
BOI stands for Beneficial Ownership Information and it is a new federal filing requirement for businesses established in the United States that basically provides information about who the business owners are that directly and/or indirectly control the business decisions of that company.
In 2021, Congress passed a new law called the Corporate Transparency Act, which makes it more difficult for “bad actors” to hide behind the guise of a business and reap the monetary benefits from activities like money laundering, fraud, and the financing of terrorist acts.
The BOI filing is a product of this new law that provides more transparency about company ownership structures and prevents the misuse of corporations and LLC’s for criminal gain. The government agency that a company’s BOI is filed with is the called the Financial Crimes enforcement Network (FinCEN).
“Ok, that sounds legit. So do all business have to file a BOI, and is my business required to do so as well?”
There are two types of businesses, defined as Reporting Companies, that are required to file a BOI with FinCEN. They are
Domestic Reporting Companies: Corporations, Limited Liability Corporations, and any other business entity that has filed their business in their jurisdiction with the Secretary of State, or any other similar type office in the United States.
Foreign Reporting Companies: Businesses formed in a foreign country that have gained permission to conduct business in the United States and have registered with the Secretary of State or other similar entity in their jurisdiction.
So at this point, you might be thinking, “Hmmm, sounds like I’m going to have to file this report!” Well, maybe not! Although these two types of reporting businesses cover a good percentage of corporations and LLC’s, there are some exceptions to the rule....23 exceptions to be exact! Check out the table below to see if your business might fall into one of the exception categories:
“So if my business is a sole proprietorship, do I have to file a BOI?”
No, unless the sole proprietorship was created in the United States with the Secretary of State or another similar office .
“What about a company that was created in a U.S. Territory?”
Yes, if the company was was filed and registered with the territory’s Secretary of State or similar office.
“My business is a S-Corp. Do I file a BOI?”
Yes, a S Corp that filed with the Secretary of State or similar office and does not meet any of the exemptions in the list above must file a BOI.
“What about businesses that were formed under tribal law, are they required to file a BOI?”
Yes, if they match the reporting company definition and do not fall under any of the exemptions, they would be required to file a BOI.
So from what you can see, if your business has been registered with your state or territory’s Secretary of State or similar office, you will most likely be required to file a BOI.
“So it sounds like I am going to have to file a BOI for my company. When do I do that, and is there a deadline to get it done?”
FinCEN officially launched it’s BOI website on January 1, 2024 for businesses to learn more about the BOI and what is entailed with the process. The date you officially created or registered to start business with your company determines the deadline for filing the BOI:
If your business was created or registered before January 1, 2024: You have until January 1, 2025 to file your BOI.
If your business was created or registered in 2024: You have 90 calendar days from the time you receive notice that your business registration is active.
If your business will be created or registered on or after January 1, 2025: You will have 30 calendar days from the time you receive notice that your business registration is active.
“So now that I know when I have to file my BOI, how do I go about filing it? Is this a one-time registration or something that needs to be filed regularly? And is the business going to have to pay a fee to file this report?”
Filing a BOI is easily done on the FinCEN website at https://boiefiling.fincen.gov and is a one time registration (unless there are changes with your business that need to be updated, then you will need to re-file the report). The report only takes about 10-15 minutes of your time and there are no fees involved when filing.
“What kinds of information can I expect to be asked when I fill out the online form for the BOI?”
For information about the company, the form will ask you
The legal name of the company
Trade names for the company
Current address
Jurisdiction of formation or registration
Taxpayer identification Number
For information about the owners/company applicants, the form will ask you
The individual’s name
Date of birth
Residential address
An identifying number from an accepted identification document, such as a U.S. driver’s license or a passport.
“What happens if I don’t file a BOI within the allotted time to do so for my business?”
The penalties for not filing a BOI in a timely manner for you business can be harsh for both the individuals and the business entity itself.
Willfully violating and disregarding this new business requirement can be subject to civil penalties up to $500 a day past the deadline, with the amount being adjusted annually for inflation. An individual who willfully violates the filing requirements could also be subject to criminal penalties up to two years in prison and a fine up to $10,000!
(Zoinks! Good thing you have educated yourself about this new, important business requirement!)
So there you have it! The mystery of the BOI has been solved! There’s no need to be scared, now that you have become armed with the information you need to file a BOI for your business, and be in compliance with this new federal business requirement. By following these guidelines, you can rest easy knowing you are now in compliance with this new federal business requirement.
What to learn more about the BOI, or have other questions about what’s involved? Check out these links to learn more!
FinCEN BOI Information page: https://fincen.gov/boi
UPDATE: Important Information! There have been reports that there have been text messages and emails going out to business owners that they need to file their BOI and to click on the link to do so, even if the BOI has already been filed. THIS IS A SCAM! DO NOT CLICK ON THE LINKS! Bad actors are out there trying to steal your personal information with these text messages and emails. The only place you should be filing a BOI is through the official FinCEN website.
Interested in learning more about my bookkeeping services for your small business? Reach out and say "Hi" by checking out my webpage at
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