Beneficial Ownership Information Reporting is Back (Again)
Quick Take
Many businesses must file Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA).
March 21, 2025 Deadline – Companies must submit their BOI reports to FinCEN by this date to avoid penalties.
Who Must File? – Most small and medium-sized businesses, except for certain exempt entities like large operating companies and regulated firms.
Non-Compliance Penalties: Failure to file can lead to fines of up to $500 per day, and knowingly false reports can result in up to $10,000 in fines and/or two years in prison.
The Financial Crimes Enforcement Network (FinCEN) has reinstated the Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA), following a recent federal court decision that lifted a previous injunction. As a result, many companies must now file their BOI report by March 21, 2025.
Understanding the Corporate Transparency Act (CTA)
Enacted in 2021, the CTA aims to prevent illicit financial activities by requiring greater transparency in business ownership. It mandates that corporations, limited liability companies (LLCs), and similar entities disclose their beneficial owners—the individuals who ultimately own or control the company. The goal is to deter the misuse of anonymous entities for fraud, money laundering, and other illegal activities.
Who Needs to Report?
Most small and medium-sized businesses are required to comply, including domestic and foreign entities registered to do business in the U.S. However, certain businesses are exempt, such as:
Large operating companies meeting specific requirements
Regulated entities (e.g., banks, credit unions)
Public companies registered with the Securities and Exchange Commission (SEC)
Inactive entities that meet exemption requirements
If you're unsure whether your company must file, we recommend reviewing FinCEN’s guidance or consulting with a legal professional.
What Information Must Be Reported?
Companies subject to BOI reporting must provide details about each beneficial owner, including:
Full legal name
Date of birth
Residential or business address
A unique identifying number (from an acceptable ID such as a passport or driver’s license)
How to File Your BOI Report
FinCEN provides a secure online portal for submitting BOI reports, which is free and designed to be user-friendly. To avoid last-minute issues, we encourage businesses to gather the necessary information and submit well before the March 21 deadline.
Non-Compliance Penalties
Failure to file a BOI report can result in significant penalties:
Civil fines of up to $500 per day for non-compliance
Criminal penalties of up to $10,000 and/or two years in prison for knowingly providing false information or deliberately withholding required details
Resources & Next Steps
For more details or to submit your report, visit:
If you have any questions or need assistance, please don’t hesitate to reach out.
Contact us at 865-584-1850 or info@proffittgoodson.com
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