If you own or operate a business, it’s crucial to be aware of the Beneficial Ownership Information (BOI) Reporting Requirement, a federal mandate designed to combat financial crimes. The law, enforced by the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury, requires many businesses to report detailed information about their beneficial owners. Failure to comply can result in substantial penalties, so understanding your obligations is essential.

1. What is the BOI Requirement?

   The BOI reporting requirement applies to most entities organized through a state’s Secretary of State office (or a similar office) or Tribal governments. This includes corporations, limited liability companies (LLCs), and other entities created through formal state or tribal filings. Even single-member LLCs, which often do not file a separate tax return, are subject to this requirement unless they qualify for an exemption.

2. Who Needs to File?

   Under FinCEN’s regulations, businesses classified as domestic reporting companies are required to file. These include:

   • Corporations
   • LLCs
   • Other entities created by filing formation documents with a state or tribal office

   If your company does not meet one of the specific exemptions outlined in the law, you must comply. Carefully review the criteria before assuming your business is exempt.

   
   
   
   

3. Penalties for Non-Compliance

   The penalties for failing to file a BOI report or failing to update changes to beneficial ownership information are significant. Non-compliance could expose your business to severe fines and legal repercussions.
   
   

4. What You Should Do

   Here’s what First Coast Accounting recommends:

   1. Understand Your Obligations
      Consult with legal counsel to determine if your company is subject to BOI reporting requirements.
   2. File If Required
      If your company qualifies as a domestic reporting company and does not meet an exemption, you must file a BOI report. The report can be filed online at FinCEN’s filing portal.
   3. Keep Ownership Information Updated
      If your business undergoes changes in beneficial ownership, update your BOI filing promptly to stay compliant.

    

   
   

5. Our Role as Your Accounting Partner

   While we are committed to supporting your business’s financial success, First Coast Accounting does not prepare, assist with, or advise on BOI filings. This includes all filings required under the Corporate Transparency Act (CTA). For more detailed guidance, visit FinCEN’s official BOI webpage, which includes a five-minute how-to tutorial for filing.

6. Why This Matters

   The BOI requirement is a key tool in the federal government’s efforts to combat money laundering, tax evasion, and other financial crimes. As a business owner, it’s your responsibility to ensure compliance with this important regulation.If you have questions about how this requirement impacts your business, we strongly encourage you to consult your legal advisor. Failure to file or update BOI information could result in significant penalties, so don’t delay in taking the necessary steps.For additional resources or assistance with your general accounting needs, contact First Coast Accounting in St. Augustine, Florida. We’re here to help you navigate the complexities of business ownership.