Approaching Deadline for Beneficial Ownership Information Reporting (BOIR): What Small Businesses Need to Know
By Marina Boeira
The Beneficial Ownership Information (BOI) reporting deadline is fast approaching, and many U.S. small businesses need to act to comply with this new federal requirement. Here’s everything you need to know about it and how the Small Business Development Center (SBDC) can help.
What is the BOI Reporting Requirement?
Under the Corporate Transparency Act (CTA), effective January 1, 2024, many companies operating in the U.S. must disclose their beneficial owners—individuals who ultimately own or control them—to the Financial Crimes Enforcement Network (FinCEN). This measure is designed to combat illicit financial activities and promote transparency within the corporate sector.
Who Needs to Report?
You must report if your business is:
- A corporation, LLC, or any entity created in the U.S. by filing with a state or tribal authority.
- A foreign entity registered to do business in the U.S.
Exemptions:
Certain entities, like publicly traded companies and nonprofits, are exempt. FinCEN provides detailed checklists for all 23 exempt categories in their Small Entity Compliance Guide.
Key Deadlines:
- For businesses created before January 1, 2024: Report by January 1, 2025.
- For businesses created in 2024: Report within 90 calendar days of your company’s registration becoming effective.
- For businesses created on or after January 1, 2025: Report within 30 calendar days.
How to Report: Avoid Unnecessary Fee
Reporting your BOI is simple, secure, and free. However, many third-party companies are offering to file on your behalf—for a fee. Some of these companies may use official-sounding names or websites, but the correct and only authorized platform is FinCEN’s official site: www.fincen.gov/boi
Steps to File:
- Online Submission: Complete your BOI filing through FinCEN’s secure portal.
- Cost-Free Filing: There are no fees when filing directly with FinCEN, and you only need to file once unless there are updates or corrections.
Important Tips:
- Be cautious: Avoid websites or services that charge fees for BOI filing. Always verify that you are on the official FinCEN website.
- DIY or Professional Help: You can complete the filing yourself or, if you prefer, your accountant or CPA can handle it for you. They are familiar with compliance processes and can ensure accurate reporting.
Upon submission, FinCEN will provide a confirmation receipt to verify that your report has been successfully filed.
How the SBDC Can Help:
The SBDC at the University of West Florida (UWF) offers no-cost business consulting and can assist with:
- Understanding your reporting obligations.
- Navigating the reporting process.
- Addressing other business questions.
Visit sbdc.uwf.edu to schedule a consultation with an expert advisor.
Conclusion:
Staying compliant with the BOI reporting requirements is crucial for small business owners. With the deadline approaching, now is the time to take action. Reach out to the SBDC for guidance and support—because staying informed means staying ahead.
About Marina Boeira: Marina is the Assistant Director for the Florida SBDC at UWF in Panama City Beach, which provides no-cost business consulting to small businesses. With over a decade in management for a Fortune 500 delivery company and experience as small business owner, Marina joined the SBDC to help other entrepreneurs achieve their goals and strengthen her community. She holds a BS in Organizational Management and Entrepreneurship from Gulf Coast State College. Contact her at: [email protected]
