The year is coming to a close, and if your business was registered before January 1, 2024, here’s a heads-up: you have just one more month to file your Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). The deadline is January 1, 2025—don’t let it sneak past you!
For businesses registered this year (2024), the clock starts ticking as soon as you get notice of your registration. You have 90 days from that point to file your report. And starting January 1, 2025, newly registered businesses will need to submit their BOI reports within 30 days of formation.
Below are answers to some of the most frequently asked questions about Beneficial Ownership Information reporting.
Who needs to file Beneficial Ownership Information?
If you’re running a small business or operating a newly registered entity anywhere in the US, Western Mass included, chances are, you need to file. The Corporate Transparency Act (CTA) requires companies created or registered in the U.S. to disclose their beneficial owners—the real humans behind the company curtain.
A beneficial owner is anyone who:
- Owns or controls at least 25% of the company, or
- Has significant influence over the company’s operations (E.g. CEO, director, or other top executives).
There are exceptions, though. Large publicly traded companies, certain nonprofits, and very small businesses with minimal activity might be off the hook.
What’s required?
When submitting your BOI report, be ready to provide details like:
- Name
- Date of birth
- Residential address
- A unique identifier (such as a driver’s license or passport number).
It’s actually a really quick process and should not take you more than 15 minutes.
Where do you file?
You’ll file your BOI report directly with FinCEN using their online filing system, which you can access at FinCEN’s website. The platform is designed to be user-friendly, and most businesses should be able to navigate it without needing to hire a lawyer or other professional.
The filing system includes clear prompts and instructions to help you input the required information. FinCEN even provides a Small Entity Compliance Guide and other helpful resources to walk you through the process step by step.
What are the deadlines?
- Existing companies (created before January 1, 2024): File by January 1, 2025.
- New companies formed in 2024: File within 90 days of registration.
- Starting in 2025, all newly registered entities will need to file within 30 days of formation.
And if anything changes—like a new owner stepping in—you have 30 days to update the report.
Can you do it without a lawyer?
For most businesses, the answer is yes. If your company’s ownership and management structure is straightforward (no complex webs of shell companies or international stakeholders), filing should be relatively painless.
FinCEN’s resources, including a handy FAQ section, are built with small business owners in mind. However, if your ownership structure is more complex or you’re unsure about meeting the requirements, consulting a professional might save time and reduce stress.
What happens if I don’t file on time?
Missing the deadline isn’t just a slap on the wrist—it can lead to serious penalties. If you fail to file, file late, or submit inaccurate information, you could face:
- Civil penalties of up to $500 per day that the violation continues.
- Criminal fines of up to $10,000.
- Even jail time of up to two years for willful non-compliance.
FinCEN takes these reports seriously because they’re crucial to fighting financial crimes. Don’t risk the fines or reputational damage—file on time and accurately.
Why is all this necessary?
By requiring transparency, the government hopes to crack down on money laundering, tax evasion, and other crimes often hidden behind layers of anonymous shell companies.
While this is a win for law enforcement, small businesses may feel the pinch of compliance. Still, it’s a small price to pay for a more honest playing field.
Where can I get help for Beneficial Ownership Information filing?
FinCEN has resources to make the process easier, including a Small Entity Compliance Guide and FAQs available on their BOI webpage. If you’re unsure whether this applies to you or what exactly to file, consult a business attorney or CPA familiar with these requirements.
This isn’t a compliance box you can afford to skip. So, mark your calendar, gather your docs, and file away!
CONTRIBUTOR
Inc413 News Team
The Inc413 news team compiles business stories from across Western Massachusetts and beyond. Our primary focus is on stories that have an impact on small businesses, entrepreneurs, and the people they employ.
