The Financial Crimes Enforcement Network (FinCEN) government agency has introduced a new Beneficial Ownership Information (BOI) filing requirement, beginning January 1st 2024, aimed at increasing transparency in financial transactions and preventing illicit activities such as money laundering and terrorist financing. This new regulation mandates that businesses disclose information about their beneficial owners to FinCEN.
Filing the BOI report is crucial for compliance with federal regulations. Failure to file by the federal deadline can result in significant penalties, including compounding fines and potential legal actions. Ensuring compliance helps your business avoid these risks and demonstrates a commitment to transparency and ethical business practices.
Not filing the BOI report can lead to severe consequences, including:
- Civil penalties up to $500 per day for non-compliance
- Criminal penalties, including fines and imprisonment for willful non-compliance
- Increased scrutiny from regulatory authorities, potentially impacting your business operations
Under the Corporate Transparency Act, certain entities are required to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) to enhance transparency and combat illicit financial activities. Generally, corporations, limited liability companies (LLCs), and similar entities created by filing documents with a state or tribal authority, as well as foreign entities registered to do business in the U.S., must report their beneficial owners. A beneficial owner is defined as an individual who directly or indirectly owns or controls 25% or more of the ownership interests or who exercises substantial control over the entity.
However, some entities are exempt from this requirement due to existing reporting obligations, regulatory oversight, or low risk of involvement in money laundering. Exempt entities include large operating companies with more than 20 full-time employees, a physical office in the U.S., and over $5 million in gross receipts or sales; publicly traded companies; and entities already heavily regulated, such as banks, credit unions, insurance companies, and investment firms. Additionally, inactive entities with no assets or business operations in the past year, governmental authorities, and certain non-profit organizations under the Internal Revenue Code are also exempt.
The FinCEN Beneficial Ownership Information (BOI) report is mandatory to enhance financial transparency and combat illicit activities such as money laundering and tax evasion. By requiring companies to disclose their beneficial owners, the BOI report helps prevent the misuse of anonymous entities that can conceal illegal activities. This transparency is crucial for law enforcement, regulatory bodies, and financial institutions to trace and identify true business owners, detect suspicious activities, and ensure compliance with legal standards. Compliance with BOI reporting aligns the U.S. with international efforts to promote a transparent and secure global financial system.
Focus on What Counts
Dedicate your energy to running your business rather than grappling with the intricacies of the new federal requirements under the Corporate Transparency Act.
Avoid serious penalties
Experience Peace of Mind
Steer clear of serious repercussions, such as up to two years of imprisonment, fines of up to $10,000, and civil penalties reaching $500 per day.
Rest assured and confident in your business, knowing your report is filed promptly and you are in full compliance with the law.
With our competitive price of just $149, you receive expert assistance, prompt filing, and peace of mind knowing that your report is accurate and timely. Trust us to handle the complexities, so you don't have to.
