Understanding the Beneficial Ownership Information (BOI) Report: What You Need to Know and How to Avoid Penalties
With the evolving landscape of corporate transparency and regulatory compliance, businesses are now required to submit Beneficial Ownership Information (BOI) reports. If you’re a business owner or stakeholder, you might be wondering what exactly a BOI report is, how it affects your business, and what happens if you miss this important filing. This article will guide you through everything you need to know about the BOI report, including how AK & Associates (AK2CPA) can assist you in ensuring compliance.
What is a BOI Report?
A Beneficial Ownership Information (BOI) report is a filing required by the U.S. government to ensure transparency about the true ownership of companies. The report is intended to prevent illicit activities such as money laundering, terrorism financing, and fraud by making it clear who ultimately owns and controls companies operating in the U.S.
As part of the Corporate Transparency Act (CTA), businesses must disclose the identity of their beneficial owners—those who own or control at least 25% of a company, or who exercise substantial control over the company, regardless of ownership percentage. The Financial Crimes Enforcement Network (FinCEN) is responsible for enforcing these regulations.
Who Needs to File a BOI Report?
Any company that meets the criteria of being a "reporting company" must file a BOI report. This generally includes:
- Corporations
- Limited liability companies (LLCs)
- Any other entity created by filing with a state or tribal authority
Exceptions exist for certain entities, such as large operating companies or regulated companies like banks, but the vast majority of small and medium-sized businesses will likely need to comply.
When is the Deadline to File?
If your business was created or registered before January 1, 2024, you are required to file your initial BOI report by January 1, 2025. If your business is created or registered after January 1, 2024, you will need to file your BOI report within 30 days of registration.
What Happens if You Miss the BOI Filing?
Failing to file your BOI report on time or submitting false information can lead to serious penalties, including:
- Civil penalties: A fine of up to $500 per day for each day that the violation continues.
- Criminal penalties: In more severe cases, failure to file could result in criminal fines of up to $10,000 or even imprisonment for up to two years.
These penalties can be financially devastating to a business, so it is critical to ensure timely and accurate filing.
How AK & Associates Can Help You with BOI Reporting
At AK & Associates (AK2CPA), we understand that compliance with regulations like BOI reporting can be complex and time-consuming, especially for small and medium-sized businesses. That’s where we come in. Here’s how we can assist you:
Expert Guidance: Our team of experienced accountants can guide you through the entire BOI reporting process, from determining if your business needs to file to ensuring that all beneficial ownership information is accurately reported.
Document Preparation: We will help you gather the necessary documents and information about your beneficial owners, making sure everything is in place before you submit the report.
Timely Filing: AK2CPA ensures that your BOI report is filed accurately and on time, helping you avoid costly fines and penalties.
Ongoing Support: Compliance doesn’t end after the first filing. We provide ongoing support to make sure your business remains compliant with BOI regulations as your ownership structure or business details change.
Tailored Services: We understand that every business is different. That’s why we offer personalized services tailored to the specific needs of your business, ensuring that you’re compliant with all reporting requirements without overcomplicating the process.
Don’t Let Compliance Fall Through the Cracks—Contact AK2CPA Today!
Missing the deadline for your BOI report can lead to severe financial and legal consequences. At AK & Associates, we make the filing process easy and stress-free, allowing you to focus on running your business while we handle the details.
Need help with your BOI report? Contact us today at AK & Associates to ensure your business remains compliant and avoid unnecessary penalties. We’re here to help!
12 / 9 / 2024