What is BOI Reporting?
BOI reporting is a new federal requirement aimed at increasing transparency in business ownership. It requires businesses to report information about individuals who own, control, or have a significant interest in the company. This includes anyone who directly or indirectly owns 25% or more of the business or exercises significant control over the company’s operations.
Why is it Important?
The purpose of BOI reporting is to help combat illicit activities such as money laundering and tax evasion by providing the government with a clear picture of who owns and controls companies. Compliance with this reporting requirement is crucial, as failure to comply could result in significant penalties, including fines.
When is it Due?
- Companies created before January 1, 2024: You must report by January 1, 2025.
- Companies created in 2024: You must report within 90 days of receiving public or actual notice of your company’s formation.
- Companies formed after January 1, 2025: BOI must be reported within 30 days of receiving public or actual notice of formation.
I recommend gathering the necessary ownership information well in advance to avoid any last-minute issues.
Here is a link to some frequently asked questions.
Here is the LINK TO FILE ONLINE.
