$591/Day Penalty for Not Filing this New MANDATORY Report for Your Business

A new government form is required to be filed for LLCs and corporations and the deadline is fast approaching.  Not filing this new form on time can result in penalties of up to $591 per day and criminal penalties of up to two years imprisonment and an additional fine of up to $10,000. If you own an LLC - don't skip this post - I want to ensure everyone knows how and when to complete this important form!

What is the Beneficial Ownership Information (BOI) report?

From FinCEN's website: In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

DOES THIS APPLY TO ME?

If you registered your business with the secretary of state - YES. If you are an LLC, single member LLC, SCorp, Corporation - All must file a BOI. Sole proprietors who have not formed an LLC - this does not apply to you. 

What if I formed an LLC but haven't conducted business/made a profit?

YES - you still must file a BOI

DUE DATE (source):

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://boiefiling.fincen.gov) on January 1, 2024.

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
• A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
• A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

PENALTIES for not filing:

FinCEN states (source)

As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, this amount is $591.

A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.

HOW TO FILE:

---> I have created a simple step by step tutorial video HERE - file yours NOW using the video as a guide to avoid costly penalties.