As 2025 approaches, businesses across the U.S. are gearing up to meet the Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) filing requirements. Starting January 1, 2025, many businesses must report detailed ownership and control information to FinCEN, aiming to increase transparency in business ownership and curb financial crimes. Failure to comply could lead to serious financial penalties, so here’s everything your business needs to prepare and comply.
What is BOI, and Why is It Important?
BOI, or Beneficial Ownership Information, pinpoints individuals with ownership or control in a business. The goal is to make business ownership structures more transparent, aligning with global efforts to prevent money laundering, tax evasion, and other illicit financial activities.
Who Must File?
The BOI requirement affects a broad scope of businesses: corporations, LLCs, and similar entities registered in the U.S., as well as foreign entities conducting business domestically. Certain larger companies, nonprofits, and inactive entities may be exempt, but smaller businesses and closely held companies are typically required to file.
Required Information for Filing
Each beneficial owner’s details must be reported, including:
- Full Legal Name
- Date of Birth
- Residential or Business Address
- Identification Numbers (from a passport, driver’s license, or other accepted ID)
Additionally, companies need to submit a clear image of each owner’s ID (e.g., a photo or scan of their driver’s license or passport) to confirm identity information.
Forms and Deadlines
The main document for BOI compliance is the FinCEN BOI Form, which requires all the above information for each beneficial owner and company applicant. Filing this form by January 1, 2025, is essential to meet the deadline.
Penalties for Missing the Deadline
Non-compliance can be costly, with fines reaching up to $500 daily for each day the filing is overdue. These steep penalties emphasize the need for timely submission.
How HR Wise Can Support You
Navigating these new BOI filing requirements may feel complex, especially for small and mid-sized businesses. HR Wise offers e-filing services to ease this process, where our experts can assist in document preparation, including ID submission, to ensure compliance and avoid costly fines.
