12/26/24: BOI is back; still due AGAIN | TikTok | Money | Business

Introduction

As of December 26, 2024, small business owners must take urgent action regarding the Beneficial Ownership Information (BOI) report. For those who have not yet filed, there is a looming deadline of January 13, 2025, after which fines exceeding $ 500 per day may be imposed, alongside the possibility of jail time for noncompliance. This overview outlines the critical details surrounding the Corporate Transparency Act (CTA) and the BOI reporting requirements that are causing confusion among business owners.

The Background

Earlier this year, the federal government announced a requirement for most LLCs and corporations to file their BOI. This initiative is aimed at increasing transparency in business ownership to prevent illegal financial activities. According to the regulations, businesses need to disclose information about any individuals who own 25% or more of the company or those exercising significant control.

However, in December, a Texas court ruling temporarily halted these requirements, leading business owners to believe they were not required to file. Unfortunately, this relief was short-lived. Just two days before Christmas, the Fifth Circuit Court of Appeals overturned the injunction, reinstating the BOI filing requirement and putting businesses back on the clock.

Key Points to Note

Filing Deadline: The new deadline for submitting the BOI is January 13, 2025. It is crucial for all affected businesses to submit their reports by this date to avoid fines.
Exempt Entities: Not all entities are required to file. Exemptions apply to publicly traded companies, certain nonprofit organizations, and larger operating companies.
Reporting Process: The reporting procedure is generally straightforward. It can be done electronically at FinCEN’s website and is expected to take only a few minutes.
Penalties for Noncompliance: Businesses that fail to report may face daily fines of up to $ 500-$ 595 and potentially imprisonment for severe violations.

Resources for Further Assistance

For businesses needing more information on filing or the specific requirements of the BOI, the Financial Crimes Enforcement Network (FinCEN) provides various resources, including FAQs, compliance guides, and instructional videos.

Please remember that while the process may seem overwhelming, it is essential to ensure compliance to avoid costly penalties.

Keywords

Beneficial Ownership Information, BOI, Corporate Transparency Act, fines, compliance, reporting requirements, FinCEN, small businesses, exemptions, LLC.

FAQ

1. What is the BOI report?
The Beneficial Ownership Information report is a requirement for LLCs and corporations to disclose information about their owners to increase financial transparency and combat illegal activities.

2. Who needs to file the BOI report?
Most LLCs and corporations need to file, except for certain exempt entities like publicly traded companies and large operating companies.

3. What are the penalties for not filing?
Businesses that do not file may incur fines of $ 500-$ 595 per day and potential imprisonment for severe cases.

4. When is the new deadline for filing the report?
The updated deadline for filing the BOI report is January 13, 2025.

5. How can businesses file their BOI report?
Reporting can be completed electronically through the FinCEN website.