Compliance with government regulations is crucial for businesses to avoid penalties and maintain financial transparency. One of the most important recent requirements in the U.S. is the Beneficial Ownership Information Report (BOI Report).
What is the BOI Report?
The BOI Report is a mandatory filing required by the Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury Department. Its purpose is to identify the real owners of businesses to combat money laundering, tax evasion, and other illicit activities.
Who must file it?
All businesses incorporated or registered to operate in the U.S., except those exempt by law (such as banks and large corporations), must file this report with details of their beneficial owners.
Why is compliance important?
✅ Avoid fines and penalties: Failing to file the BOI Report can result in fines of up to $500 per day and other severe penalties.
✅ Greater transparency: Demonstrates the legitimacy of your business to the government and financial institutions.
✅ Fraud prevention: Helps identify real owners, preventing shell companies from engaging in illegal activities.
Deadline and how to file
- For businesses registered before January 1, 2024: The deadline to file is January 1, 2025.
- For businesses registered after January 1, 2024: You must file within 90 days of incorporation.
Need help filing your BOI Report? CORTACCis here to assist you. Contact us today!
