With the introduction of the Corporate Transparency Act (CTA), small businesses across the U.S. face new compliance challenges. The Beneficial Ownership Information Reporting Rule (BOIR) requires most companies to disclose who controls or owns significant portions of their business. Staying compliant with this new requirement is essential for avoiding penalties, but it can also be time-consuming. Here’s how you can keep your business on track in 2024 and beyond.
What is Required for BOIR Compliance?
The CTA mandates that reporting companies—typically LLCs and corporations—submit a report with details about their beneficial owners to FinCEN. Beneficial owners are individuals who either:
- Own 25% or more of the company, or
- Exercise substantial control over the company’s decisions.
You’ll need to provide specific information about each beneficial owner, including their legal name, date of birth, address, and a copy of a government-issued ID.
Deadlines You Need to Know
- Existing Companies: Formed before January 1, 2024, must submit their BOIR by January 1, 2025.
- New Companies: Formed on or after January 1, 2024, must file their report within 90 days of formation.
- Changes in Information: If any details change, such as ownership or control, a new report must be filed within 30 days.
Avoiding Penalties
The penalties for non-compliance are steep. Fines of up to $10,000 and daily penalties of $500 could apply, not to mention potential imprisonment. That’s why ensuring timely and accurate filings is crucial.
How BOIR Reporting Service Ensures Compliance
The complexity of the BOIR process can overwhelm business owners who are already focused on running their operations. With BOIR Reporting Service, you don’t have to worry. We handle everything from collecting beneficial ownership details to filing on time. Our service guarantees 100% accuracy, giving you peace of mind that your business will remain compliant with federal regulations.