Business owners must file a one-time report with the Financial Crimes Enforcement Network by December 31 or risk fines of $500/day.

As part of government efforts to detect fraud and prevent other crimes, business owners are required to file a Beneficial Ownership Information (BOI) report by December 31, 2024. If you haven’t already filed, here’s what you need to know.

Why reporting is required

The Corporate Transparency Act (CTA) of 2021 calls for reporting to help protect economic and national security by reducing corporate anonymity that enables money laundering, drug trafficking, terrorism and corruption.

Who needs to report beneficial ownership information

Most U.S. entities and foreign entities are required to file a report with the Financial Crimes Enforcement Network (FinCEN). If you have an LLC, an S-Corp or a C-Corp, you need file a BOI report. Some types of companies are exempt; see the list of 23 exempted entitles here (under section C.2.).

Information needed for filing

Information for each beneficial owner must be provided, including:

• Name
• Date of birth
• Address
• The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport or a non-expired identification document issued by a State (including a U.S. territory or possession), local government or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the identification document must also be submitted.

A BOI report only needs to be filed once but it needs to be updated if there are changes in a business’s ownership.

Beware of scams

Opportunistic scammers have been soliciting information and money from individuals and entities who need to file a BOI. FinCEN has issued these warnings to help you avoid fraudulent actors:

• FinCEN does not send correspondence by email or USPS requesting recipients to click on a URL or QR code.
• Correspondence citing a “Form 4022” is fraudulent. FinCEN does not have a Form 4022.
• There is no “U.S. Business Regulations Department.” Any correspondence or documents using this name is fraudulent.

Filing is free

There is no fee to file a BOI report directly with FinCEN.

Can I delegate the filing of my BOI report?

Some businesses owners have their accountant or attorney file their BOI. Payroll processors like Gusto may also file on your behalf. If you delegate filing, the service provider will charge for their services.

If you choose to delegate the filing of your BOI, work only with a trusted party.

When is the BOI reporting deadline?

The deadline for reporting depends on when your business was formed:

• Entities formed before January 1, 2024, have until January 1, 2025, to file a BOI report.
• Entities formed in 2024 must file within 90 days of formation.
• Entities formed on or after January 1, 2025, have 30 days to file.

Penalties for not filing 

Failure to report complete or updated beneficial ownership information to FinCEN could result in civil penalties of $500 for each day the violation continues. Criminal penalties include imprisonment for up to two years and/or a fine of up to $10,000. Furthermore, senior officers of an entity that fails to file a required report may be held accountable.

Where to file

FinCEN has an online e-filing system at: https://www.fincen.gov/boi. To ensure you’re on the correct site, look for .gov in the URL and the locked padlock icon in your browser’s internet address bar.

When you complete the BOI filing online, you can download a PDF transcript of your filing. Ensure that the transcript’s status line reads “filing successful,” and save a copy of the transcript.

To learn more, visit FinCEN’s Frequently Asked Questions page.

 

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