Have You Filed Your BOI Report?
Effective January 1, 2024, the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury, has introduced a crucial new reporting requirement known as "Beneficial Ownership Information" (BOI) reporting. This applies to most legal entities, domestic or foreign. This is a separate filing obligation for companies, distinct from annual reports and tax filings. The BOI Report is not submitted to the IRS; it is filed directly with the US Department of Treasury. The deadlines for this filing requirement are determined by the date your business was established:
Existing Entities (Established Prior to January 1, 2024) must file a Beneficial Ownership Information BOI report with FinCEN by January 1, 2025.
Entities Formed on or After January 1, 2024, and Before January 1, 2025, are required to file a Beneficial Ownership Information BOI report within 90 calendar days of registration or formation with their state’s Secretary of State’s office.
Entities Created or Registered on or After January 1, 2025, have 30 calendar days from the effective date or public notice of registration to file a BOI report.
The penalties for non-compliance are severe, including substantial fines and there is also potential for criminal repercussions. Additionally, senior company officers who fail to file mandated BOI Reports may be held personally liable for the failure to file. While many established businesses have until January 1, 2025 to finalize their BOI reporting, we strongly advise our clients to consider early filing or at least get prepared to file. Anticipating a potential surge in reports, we encourage proactive submissions to avoid potential delays due to increased demand on the FinCEN system. Navigating this new regulatory landscape may pose challenges for business owners, and that’s why we’re here to assist you. General Counsel by Cannon is committed to saving you time and providing peace of mind by ensuring your BOI report is completed accurately and submitted on time. Cannon will, upon request, assess whether your company falls within an exemption to reporting, and if not, Cannon will handle the electronic filing of BOI reports through FinCEN’s secure system.
To benefit from this service, please email me at t.cannon@GCbyCannon.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between General Counsel by Cannon and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
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