Ensure Your Business Complies with Beneficial Ownership Reporting
In an effort to combat money laundering, tax evasion, and other illicit activities, U.S. businesses are now required to disclose Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This requirement, established under the Corporate Transparency Act (CTA), is designed to increase transparency and help identify the true owners and controllers of businesses.
What Is Beneficial Ownership Information (BOI)?
BOI refers to details about the individuals who own or control a company. These beneficial owners are typically those who:
- Own or control at least 25% of the company's equity or voting interests, or
- Have substantial control over the company's operations.
The BOI report requires your business to submit detailed personal information about its beneficial owners, including:
- Full legal name
- Date of birth
- Current residential address
- Unique identifying number (e.g., from a government-issued passport or driver’s license)
Additionally, companies formed after the rules take effect will also need to report the company applicants—the individuals responsible for filing the company’s formation documents.
When Is the BOI Report Due?
The deadline for filing your BOI report depends on when your company was formed:
- Companies formed before the new rules take effect: These businesses must file their BOI report by December 31 of the year following the company’s formation.
- Companies formed or registered in 2024: These companies must file their BOI report within 90 days of receiving notice that their entity creation or registration is effective, whichever comes earlier.
- Companies formed on or after January 1, 2025: For companies formed after this date, the BOI report will be due within 30 days of receiving notice of formation or registration.
Once the report is filed, it must be updated if any changes occur, such as changes to beneficial ownership or company details. Updates must be filed within 30 days of any change.
Penalties for Non-Compliance
Failure to file the BOI report on time or submitting inaccurate or incomplete information can result in serious consequences, including:
- Civil fines: Up to $500 per day for each day the report is late.
- Criminal penalties: A fine of up to $10,000 and up to two years in prison for willfully failing to report.
Given the high stakes, it’s critical to ensure your BOI report is accurate, timely, and kept up to date.
How VoomMax Can Help You Stay Compliant
Simple, Step-by-Step Guidance
We provide an easy-to-use platform that walks you through the process of gathering and submitting the required information about your company and its beneficial owners.
Timely and Secure Filing
Rest assured that your BOI report will be filed accurately and on time. We also provide notifications to keep you informed of any required updates, ensuring you stay compliant at all times.
Avoid Costly Penalties
With VoomMax, you reduce the risk of errors that could lead to fines or criminal penalties. Our platform ensures you meet all requirements, keeping your business in good standing with FinCEN.
