Important Update:BOI Reporting Requirements & Deadlines

Important Update:

BOI Reporting Requirements & Deadlines

Hello Jennifer,I hope this message finds you well! It’s time for a Business Ownership Information (BOI) reporting requirements update.

What is BOI Reporting?

Formal definition: BOI reporting is a regulatory requirement designed to enhance transparency by mandating certain entities report ownership and controlling interest information to a designated federal body. This initiative aims to prevent and combat financial crimes, such as money laundering and fraud, by creating a more transparent business environment.

Informal definition: Business owners must do this required reporting or else we will get fined. Failure to submit a BOI report may lead to fines of up to $500 per day.

Please see the attached PDFfor more information.

Deadlines for Compliance:

For Companies created or registered before January 1, 2024:

• Initial BOI report is due by January 1, 2025

For Companies created or registered on or after January 1, 2024:

• Initial BOI report is due within 90 days of formation

For Companies created or registered on or after January 1, 2025

• Initial BOI report is due within 30 days of formation

BOI reports are not a recurring requirement. However, an updated report must be filed within 30 calendar days of any changes to the entity or its owners. If your company relocates, you need to update the report; or if there is a new partner added, the report must be updated.

Action Steps:

1. For Companies established prior to January 1, 2024: Hold off on filing for now. As you may have heard, there is a significant court case in Georgia challenging the constitutionality of the BOI reporting requirements. This case focuses on the nuances of reporting obligations and privacy issues and could potentially reshape the application of these regulations for businesses formed prior to 2024. Since you have until the end of 2024 to file, I would recommend waiting to see what happens with the court case.

2. For Companies established this year (2024): To ensure full compliance, we encourage you to proceed with submitting your BOI reports. As a reminder, you have 90 days to file these reports from the day of inception. Filing is not difficult. It took me 45 minutes to file for my first company (time includes scanning in my driver license). By the time I did my third LLC, it took me 15 minutes. However, my LLCs are simple with few partners. The link to the Fin Cen website is: https://boiefiling.fincen.gov/ If you do not want to use the Fin Cen website, we have partnered with CorpNet to help our clients. You can reach out to Marissa Jenkins with CorpNet. She can help walk you through the process. The cost is $100. Her contact information is below: Marissa Jenkins, Dedicated Account Manager Toll Free: 1-888-449-2638 Ext 131 / Direct: 805-309-0591 The link to the application on CorpNet’s site is: https://www.corpnet.com/start-business/boi-reporting/?PID=16750

The key takeaway is: if you opened a new company in 2024, please go file! 90 days is not a long window for compliance, and I don’t want anyone to have fines. For companies started prior to 2024, we will keep you posted on what we recommend.

So, hold off for now.

Thank you for your business! We appreciate you! Lisa Dionisio, CPA