Small Business Owner Alert! BOI Requirement is Back!

BREAKING NEWS: A decision on February 18, 2025, has reinstated this filing requirement! Most companies now have until March 21, 2025, to file. Contact us if you have any questions!

Urgent: Beneficial Ownership Information

There is an imminent filing deadline that every small business needs to be aware of, and we’ve outlined the basics of what you need to know about filing the required Beneficial Ownership Information for small businesses.

FinCEN: Financial Crimes Enforcement Network is the agency charged with enforcing this requirement. You can follow this link to go directly to their site, which has a long list of FAQs.

Why should you know about it?

Well, the main reason is the fines if you don’t file. Not filing by the Due Date?can subject you to (at the time of this post) $591 dollars per day if the violation continues. In addition, if you are found to have willfully violated the requirement to file, could subject you to a $10,000 fine and 2 years in prison.

Who needs to file?

1 - Any small business with revenues under $5 million likely will need to file. There is a large business exemption, which, in summary, is revenue over $5 million, has filed tax returns at a minimum in 2023 to support that revenue and employs more than 20 people.

2 - If you are a sole proprietor without an LLC, you can stop reading. This doesn’t apply to you.

3 – For a complete list, visit the FinCEN site, but if you are already registered with FinCEN you probably don’t have to file. https://fincen.gov/

What is a Beneficial Owner?

Basically, anyone who owns or controls more than 25% of your business or otherwise has control of the business is considered to have control. What is control? The definition is somewhat up to interpretation, but it's anyone who exercises substantial control over the business.

Due Dates

1 – If your business was established before 2024, you had until January 1, 2025, to file.

2 – If your business was created in 2024, you have 90 days from the date your company was registered.

3 – If your business is created in 2025 and beyond, you have 30 days to file.

How do I file?

There are a few options for filing.

1 – You can file for no charge online. It’s a simple form to complete, but you must gather the necessary information before filing. Here is the link to the filing website.

2 – You can file a paper copy. Here is the link to download the form.

3 – You can hire a service; brief research shows fees of around $150. However, you will still need to gather the information required for filing.

What do I need to file?

1 - For a complete list of information you will need, follow this link.

2 - For the business, you will need basic company information, legal entity name, EIN, and address.

3 - For the Beneficial Owners, you will need a name, address, date of birth, and the number of an identifying document such as a driver’s license or passport, and you will need to upload an image of the identifying document for each Beneficial Owner.

Any good news in all of this?

1 - You don’t have to file again unless there is a change in ownership.

2 – It took us less than 5 minutes to file online.

What is the Corporate Transparency Act (CTA)?

The Corporate Transparency Act (CTA) is a U.S. federal law enacted in January 2021 as part of the National Defense Authorization Act. Its primary purpose is to combat money laundering, tax evasion, and other illicit financial activities by requiring certain businesses to disclose information about their beneficial owners to the Financial Crimes Enforcement Network https://fincen.gov/(FinCEN).

Contact Donna Mackenzie at the Florida CFO Group if you have any questions or need more information!