Understanding BOI (Beneficial Ownership Information) Reporting for Businesses

Published by John Holmes at June 18, 2024

About Us

At Fricke & Associates, we prioritize informing clients about crucial regulatory changes that could impact their businesses. One of the most significant recent developments is BOI (Beneficial Ownership Information) Reporting, a mandate requiring businesses to disclose beneficial ownership information. Let’s dive deeper into BOI Reporting, emphasizing its penalties for non-compliance and the importance of timely and accurate reporting.

Understanding BOI Reporting:

BOI Reporting is a regulatory requirement to enhance transparency and combat financial crimes like money laundering, terrorist financing, and fraud. Businesses must disclose information about their beneficial owners, including individuals who directly or indirectly own or control the business. This disclosure is crucial in maintaining transparency and accountability in corporate ownership structures.

Penalties for Non-Compliance:

The penalties for failing to comply with BOI Reporting requirements are substantial. Businesses that do not file their BOI Reports accurately and on time face severe consequences, including:

  • A hefty fine of $591 daily for late filing (indexed for inflation).
  • A fine of up to $10,000 and a potential prison sentence of up to two years for willful non-compliance.

Businesses must understand these penalties and the urgency of meeting BOI Reporting obligations promptly and accurately to avoid legal repercussions and financial losses.

Critical Timelines:

Businesses created on or after January 1, 2024, have a strict timeline to adhere to. They must file their BOI Report within 90 days of their creation date. The deadline for businesses established before January 1, 2024, is January 1, 2025. Adhering to these timelines is crucial to avoid penalties and ensure compliance with regulatory requirements.

Professional Assistance at Fricke & Associates:

Fricke & Associates has a team of experienced professionals specializing in BOI Reporting requirements. Our experts can guide businesses through filing their BOI Reports accurately and on time, helping them avoid costly penalties and legal repercussions. We are committed to providing comprehensive support to ensure our clients confidently and comply with the BOI Reporting landscape.

You can refer to official resources such as the Federal Register and FinCEN for more detailed information on BOI Reporting and its implications. Industry insights from sources like Grant Thornton can provide valuable context and guidance.

If you need assistance with BOI Reporting or have any questions about compliance, please don’t hesitate to contact us. We are here to help you navigate regulatory requirements and ensure your business remains compliant and resilient.

Explore Our Blog

We have set ourselves up as leaders in the industry to educate our audience on relevant topics in the accounting world.

Understanding the 2025 Changes to the Tax Codes

As we approach 2025, staying informed about changes in tax…

Read more

What Makes Fricke & Associates Special?

At Fricke & Associates, LLC, we believe accounting and tax…

Tax Relief After Hurricane Helene: What You Need to Know

Hurricane Helene significantly impacted the Southeast, especially in Georgia, and…

We can help

If you need a bookkeeping professional for Small businesses in Atlanta, GA, Fricke & Associates, LLC. We have the expertise and experience to understand your needs, analyze your financial data, promote your growth, and ensure your financial future is set on a successful path. Additionally, we are a leader in developing and implementing the latest technology for optimizing accounting, tax, and financial planning solutions.

Join Our Email List

Enter your email address to stay up-to-date on recent tax laws and receive helpful tips!