The January 1, 2025 Deadline: Why EVERY Business Owner Must File Their Beneficial Ownership Information
The clock is ticking, and if your business entity was created before January 1, 2024, you have until the end of the year to submit your Beneficial Ownership Information (BOI) report under the Corporate Transparency Act (CTA). This isn’t something you can brush off or leave for later. Every non-exempt entity—including LLCs, corporations, and other similar structures—must comply, or you could face significant penalties. And yes, that means YOU.
If you haven’t filed yet, it’s time to act now. The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has made the process straightforward with an online portal, and we highly recommend filing online to save time and reduce errors. You can skip the headaches of PDFs and forms—just follow FinCEN’s step-by-step guide to walk you through the entire process, screen by screen.
Who Must File?
The new BOI reporting rule applies broadly to “reporting companies.” This means virtually any corporation, limited liability company (LLC), or similar entity formed by filing a document with a state or tribal jurisdiction falls under these requirements. Both domestic and foreign companies registered to do business in the U.S. must comply.
However, there are notable exemptions. Large, regulated entities such as publicly traded companies, banks, insurance companies, and nonprofits (e.g., 501(c)(3) organizations) are not required to file. Also, businesses that meet three key criteria—more than 20 full-time employees, over $5 million in gross revenue, and an operating presence in the U.S.—are exempt as “large operating companies.”
If your entity doesn’t fall into one of these exempt categories, you’ll need to file.
What’s Required in the BOI Report?
Your BOI report will include detailed information about each individual who qualifies as a "beneficial owner" of the entity. A beneficial owner is defined as someone who directly or indirectly:
Owns or controls at least 25% of the company’s equity, or
Exercises substantial control over the company’s management or decisions (e.g., senior officers or board members).
For each beneficial owner, you'll need to provide:
Full legal name
Date of birth
Current residential or business address
A unique identifying number (from a passport, driver’s license, or similar document) along with an image of the document itself.
For newly created companies (formed on or after January 1, 2024), you'll also need to provide information about the individual(s) responsible for filing the company’s formation documents—known as "company applicants."
Why Does This Matter?
Failing to file your BOI report or filing it inaccurately can lead to severe penalties. Businesses that willfully provide false information or fail to report are subject to fines of up to $500 per day, capped at $10,000, and even face up to two years in prison.
Beyond the legal repercussions, there’s a bigger picture at play: businesses that don’t comply with transparency rules could lose credibility with investors, financial institutions, and other key stakeholders. It’s about maintaining your legitimacy in an increasingly regulated environment.
When and How to File?
For entities formed before January 1, 2024, the first BOI report is due no later than January 1, 2025. If your company was created on or after January 1, 2024, you’ll have 90 days from the formation date to submit the BOI report. After January 1, 2025, the window to file narrows down to 30 days after formation.
The process will be handled electronically via FinCEN’s reporting system, so be prepared to submit the required information securely online.
Here’s what you need to get started:
Entity Details: Have your entity’s full legal name, Employer Identification Number (EIN), and primary business address ready.
Beneficial Owners’ Information: This includes the names, Social Security Numbers (SSNs), and a picture ID (like a passport or driver’s license) of every beneficial owner who owns 25% or more of the business or exercises substantial control.
Company Applicant Info: If your business was created on or after January 1, 2024, you’ll also need details of the person responsible for filing the entity's formation documents.
FinCEN provides a Quick Reference Guide and a complete step-by-step PDF guide that shows every single screen and input required for your BOI filing. It’s literally the playbook for how to get it done, and you can access it here.
Don't Wait: Start Filing Online Now
The process can be completed online at the FinCEN BOI portal, which is the easiest and most efficient way to meet the deadline. Don’t risk missing this crucial requirement—if you fail to file on time or provide false information, you could face up to $500 per day in fines, up to $10,000 in penalties, and even up to two years in prison.
This isn’t a suggestion—it’s a legal obligation. Every business owner, big or small, must take this seriously. Avoid the rush at year-end and handle it today. If you need assistance with this, please feel free to contact us and we’ll be happy to help.
