BOI Reports: Your ‘How to’ Guide to Filing

Hey, business owner! I’m sure you’ve heard about BOI Reports for several months & you probably have a ton of questions. After all, it’s brand new and the information out there is confusing. Below, we’ll tell you everything you need to know about BOI reports and how to file them on your own before the deadline so you don’t go bankrupt paying non-filing penalties. 

First: What is a BOI Report?

First things first, let’s explain this acronym. BOI stands for Beneficial Ownership Information. A BOI report is a document that certain businesses need to file with the Financial Crimes Enforcement Network (FinCEN). It’s basically Uncle Sam’s way of keeping tabs on who really owns and controls businesses in the US. Aka, more government oversight (barf).

Think of it as a corporate family tree. The government wants to know who’s sitting at the top of that tree, pulling the strings. Why? Well, it’s all part of an effort to combat money laundering, tax evasion, and other financial shenanigans (so they say). 

Do I Need to File?

Now, before you start panicking and thinking, “Oh great, more paperwork!”, let’s see if you actually need to file a BOI report. You’ll need to file if your business is a:

  1. Corporation
  2. Limited Liability Company (LLC)
  3. Other entity created by filing with a secretary of state or similar office

So, just to be clear – most small-midsize business owners fall into this category and need to file.

But wait! There are exceptions. You don’t need to file if your business is:

  1. Publicly traded
  2. Heavily regulated (like banks or insurance companies)
  3. A tax-exempt entity
  4. An inactive business (formed before January 1, 2020, and meets certain criteria

If you’re still not sure, it’s best to check with a legal professional. Better safe than sorry, right?

What Information Goes into a BOI Report?

image showing a checklist of items

Next, we’ll go over what you need to include in your BOI Report. Now here’s the breakdown:

  1. Company Information:
    • Full legal name
    • Any trade names or “doing business as” names
    • Business street address
    • State or Tribal jurisdiction of formation
    • IRS Taxpayer Identification Number
  2. Beneficial Owner Information (for each beneficial owner):
    • Full legal name
    • Date of birth
    • Residential street address
    • Unique identifying number (like a passport or driver’s license number)
  3. Company Applicant Information:
    • The same details as for beneficial owners, but for the person who filed the paperwork to create or register the entity

Remember, a beneficial owner is anyone who either directly or indirectly owns or controls 25% or more of the company, or who has substantial control over the company.

How to File a BOI Report: A Step-by-Step Guide

Now for the fun part – actually filing the report! Don’t worry, it’s not as daunting as it sounds. Here’s a step-by-step guide:

  1. Create a FinCEN account: Head over to the FinCEN website and create an account.
  2. Gather your information: Remember all that info we talked about earlier? Now’s the time to round it up. Pro tip: Having all this info ready before you start will save you a lot of time.
  3. Access the BOI filing system: Once you’re logged in to your FinCEN account, navigate to the BOI filing system. It should be pretty straightforward.
  4. Fill out the form: Enter all the required information. Double-check everything – typos are not your friend here. If you can, have a second set of eyes to review the information.
  5. Submit the report: Once you’re sure everything is correct, hit that submit button. Congratulations! You’ve just filed your BOI report. That’s it!

Deadlines To File Your BOI Report

clock showing that there is a deadline

Alright, now that you know how to file, let’s talk about when you need to file. Because like your favorite streaming service, this too has a deadline.

  • For businesses created or registered before January 1, 2024: You have until January 1, 2025, to file your initial BOI report.
  • For businesses created or registered on or after January 1, 2024: You have 30 days from the date of creation or registration to file your initial BOI report.
  • For any changes to your beneficial ownership information: You have 30 days from the date of the change to file an updated BOI report.

Mark these dates on your calendar, set an alarm on your phone, tie a string around your finger – whatever it takes to remember! Or, better yet, just do it RIGHT NOW.

Penalties: The Quickest Way to Spend Your Money

Now, I hate to be the bearer of bad news, but there are penalties for not filing your BOI report on time. And trust me, these penalties are not a joke.

  • Civil penalties can go up to $500 for each day the violation continues.
  • Criminal penalties can include fines up to $10,000 and/or imprisonment for up to two years.

I told you, these penalties are nothing to mess around with. So, again, I say: GO FILE YOUR BOI REPORT RIGHT NOW!!

Tips for a Smooth BOI Reporting Experience

Want to make your BOI reporting as smooth as possible? Here are some tips:

  1. Start early: Don’t wait until the last minute. Give yourself plenty of time to gather information and file the report.
  2. Keep good records: Maintain up-to-date information on your beneficial owners. It’ll make future filings much easier.
  3. Set reminders: Put those deadlines in your calendar and set reminders. Your future self will thank you.
  4. Stay informed: Keep an eye out for any changes to BOI reporting requirements. The world of regulations is always evolving.
  5. When in doubt, ask for help: If you’re unsure about anything, don’t hesitate to consult with a legal or financial professional.

Common Questions About BOI Reports

Still have some burning questions? Let’s tackle a few common ones:

  1. Q: Do I need to file a BOI report every year? A: No, you only need to file initially and then when there are changes to your beneficial ownership information.
  2. Q: What if I don’t know all the information required? A: You’re required to provide complete and accurate information. If you’re unsure, it’s best to consult with the individuals involved or seek professional help.
  3. Q: Is the information in my BOI report public? A: No, BOI reports are confidential and can only be accessed by authorized government agencies for law enforcement and national security purposes.
  4. Q: Can I file a paper BOI report? A: No, BOI reports must be filed electronically through the FinCEN website.
  5. Q: What if I make a mistake on my BOI report? A: If you realize you’ve made a mistake, file a corrected report as soon as possible. Honest mistakes happen, but it’s important to correct them promptly.

Wrapping Up: You’ve Got This!

And there you have it – everything you need to know about BOI reports, wrapped up in a neat little package. Remember, while it might seem like just another bureaucratic hoop to jump through…you’re probably right – but they will fine the crap out of you until you file it, so just do it.

In all seriousness, staying compliant with BOI reporting requirements is crucial for your business and bank account. It might not be the most exciting part of being a business owner, but it’s an important one. And hey, now you can share this post with all of your business owner friends, so they can file their BOI reports and not drown in financial penalties. 

Remember, if you’re ever unsure about anything related to BOI reporting, don’t hesitate to seek professional advice. It’s always better to be safe than sorry when it comes to regulatory compliance.

By the way, we help contractors and trades business owners with bookkeeping, payroll, tax strategy, tax returns and more – all year long. We’r here as a resource to help walk you through these weird new business regulations that pop up (way too often). If you find yourself looking for a new accounting firm that is aggressive about helping you save & educating you, click here to book a call.

Now, click here and file those BOI reports!

Like this post? Check out our other blogs:

Disclaimer: This article provides general information and should not be construed as tax, legal, or accounting advice. Always consult qualified professionals for guidance specific to your situation.

FREE RESOURCE

Your Guide to Set Up Subcontractors the Right Way

Are you having trouble collecting information from your subcontractors? Download our “Subcontractor Checklist Packet” to know what you need from them for 1099’s, workman’s comp, and liability audits. We’ve even included a contract for reduced liability!

Justice Bragg

Business Development Specialist, Florida

At work, Justice is passionate about helping the team make decisions and connections that propel the business forward. He prioritizes client satisfaction by serving as a medium to facilitate communication to the proper channels making sure every issue is properly addressed.

Outside of work, Justice enjoys exercising by going to the gym and playing pickleball with his friends. He is a self-proclaimed foodie who can’t say no to trying a new restaurant, sometimes even immediately regretting it.

Zachary Williams

Staff Accountant, Florida

At Level Accounting, Zach is responsible for bookkeeping & payroll. He is dedicated to ensuring financial success for our clients.

Beyond the office walls, Zach’s weekends are filled with adventure, whether he’s exploring Florida’s hidden gems with his wife or battling it out in tournaments. When it’s time to unwind, you’ll find him at the movies or casting his line out for a relaxing fishing session.

Melanie Jerome, MBA

SENIOR STAFF ACCOUNTANT, FLORIDA

Meet Melanie J, one of our senior staff accountants! Melanie ensures your financial health with precision and expertise. Beyond the office, she’s a true crime enthusiast who loves traveling and outdoor adventures. Whether she’s balancing books or exploring new trails, MJ’s dedication and skill set the standard for excellence in our team.

Seren Lunsford, MBA

STAFF ACCOUNTANT, INDIANA, QUICKBOOKS ONLINE PRO-ADVISOR

Meet Seren, one of our dedicated staff accountants here at level accounting! She is responsible for bookkeeping & payroll. Outside of the office, you can find her on the sidelines of a soccer pitch, karting track, or baseball diamond, cheering on her two active boys. Seren is also a proud owner of two gentle giants, her beloved Great Danes. In her downtime, she channels her creativity into baking and decorating sugar cookies, always eager to experiment with new baked goods ideas and recipes. With her expertise in accounting and her passion for family, pets, and baking, Seren brings a unique blend of professionalism and warmth to our team.

Ivette Rivera

EXECUTIVE ASSISTANT, FLORIDA

Ivette Rivera is our Executive Assistant at Level Accounting, juggling schedules and keeping things running smooth.

When she’s not crushing it at work, Ivette is an avid participant in her church community. As a mom, she’s all about those quality moments, whether it’s baking up a storm, hitting the water for some kayaking fun, or just chilling with a good book or binge-worthy show. And let’s not forget her partners in crime at home: Harley Quinn, the fridge-raiding pit bull, and Atlas, the cat who rules the roost. Ivette’s all about that balance between work hustle and personal bliss.