Report Your Company’s Beneficial Ownership Information: A Complete Guide
Understanding when you need to report your company’s Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) is crucial for avoiding fines and punishment. Not all companies need to file their BOI reports at the same time, and it is important for you to know which deadline applies to you and how to comply with it. That is where this article comes in.
When to Report Beneficial Ownership Information to FinCEN
When you need to file your BOI, report depends on when your company was established.
- New Companies – All businesses established after January 1, 2024, must file an initial BOI report within 90 days of formation. This means that the clock starts ticking as soon as you register your business.
- Existing Companies – Companies that were already in existence before January 1 this year have until January 1, 2025, to comply with FinCEN’s Beneficial Ownership Information reporting requirements. This deadline has been designed to give existing businesses sufficient time to gather all the necessary information to complete their filings.
- Changes in Beneficial Ownership – It is important to note that your FinCEN compliance process does not end with the filing of your initial BOI report. If your business undergoes any changes to its beneficial ownership structure — like new owners being added or existing owners leaving, or even if there are any changes in the ownership percentages — you are then required to update your report within 30 days of the change.
The Importance of Timely Reporting
Following the reporting deadlines is not just a regulatory requirement—it is also an important part of your company’s compliance. Failure to do so can lead to harsh penalties, including civil penalties of up to $500 per day that a violation continues and criminal penalties that include a $10,000 fine and/or up to two years of imprisonment.
For More Details: Reach Out to BOIFinCEN Reporting for more details and information.
Conclusion
Understanding when to report your company’s Beneficial Ownership Information to FinCEN is important to ensure compliance with the CTA. Whether you are forming a new company, managing an existing one, or even dealing with changes in the company’s ownership, understanding and following the reporting requirements will help you avoid major penalties while maintaining your standing with the regulatory authorities.
