FINCEN (Financial Crimes Enforcement Network) has announced on December, 27th, 2024, that small businesses are not required to comply with the Beneficial Ownership Information.

Small business owners, there has been yet another update to the BOI filing requirement for small businesses. What is BOI = Beneficial Ownership Information or BOIR = Beneficial Ownership Information Reporting? Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. BOI has definitely become frustrating to small business owners. Is BOI required or not?

In 2021, Congress passed the Corporate Transparency Act (CTA) on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures. Learn more about CTA.

On December 3rd, a Texas court upheld the decision on a national level that small businesses do not have to comply with the request to file a BOI. Then on December 23rd, U.S. Court of Appeals for the 5th Circuit has reversed the decision therefore resulting in small businesses being required to file BOI which were to be due by January, 13th, 2025. (Forbes.com)

Now, as of December 26th, within just 3 days of the previous decision a different panel within the U.S. Court of Appeals for the 5th Circuit has reversed (overturned) the decision and small businesses are not required to file and voluntary filing is now in effect. As we wait for further review and yet another decision, keep in mind should the decision to establish filing compliance be reversed again, failure to do so could very well result in a penalty of up to $500 per day, which has been increased to $591 per day. Anyone who willingly violates the filing requirements can face up to 2 years imprisonment and a fine of up to a maximum of $10,000 (FINCEN Penalties).

Are you considering completing the BOI filing? The online filing process is FREE and takes 5 min or less to complete and submit. The filing process is straight forward in which your basic personal and business information including ownership is required. You will need acceptable ID, and your Employer Identification Number (EIN#) to submit your filing. (small businesses) can not use or provide a P.O. Box address as it’s current address. You must report a physical street address.

There are some companies that are charging fees from $149 to $349 to complete and submit the BOI filing on your behalf, consider filing it yourself FREE or seek “free” assistance. Please note that filing for BOI is available absolutely FREE on FINCEN BOI website.

There are many small business owners who are not aware of BOI requirements, process and current status. If you know of anyone who is a small business owner, please share this important information with them. They can visit FINCEN FAQ to learn about requirements, exemptions and more.

Until Next Time,

Trina H|GET AROUND TOWN