Introduction
With the new Beneficial Ownership Information (BOI) reporting requirements taking effect on January 1, 2024, small business owners need to know what specific information they must provide. This post will break down the details you need to gather and submit to ensure you comply with the new federal rules.
Why This Information is Important
The purpose of the BOI reporting rule is to increase transparency in business ownership. By providing detailed information about the individuals who own or control a business, the government can better monitor and prevent illegal activities, such as money laundering and tax evasion. As a small business owner, your compliance helps contribute to a safer and more trustworthy business environment. Take our free quiz today to see if you need to file!
Key Information You Will Need to Provide
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Business Information:
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Legal Name: The official name under which your business is registered.
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Address: The primary physical location of your business.
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Identification Number: Your business's Employer Identification Number (EIN) or other official registration number.
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Beneficial Owners Information:
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Full Legal Name: The complete name of each individual who owns or controls at least 25% of the business.
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Date of Birth: The birthdate of each beneficial owner.
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Residential Address: The home address of each beneficial owner.
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Identification Numbers: A government-issued ID number, such as a driver's license or passport, for each beneficial owner.
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Company Applicant Information:
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Legal Name: The name of the individual who filed the business formation documents. This is automatically entered and submitted to The US Department of the Treasury when you file with us.
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Identification Numbers: Similar to beneficial owners, this includes a government-issued ID number for the applicant.
How to Gather This Information
Start by reviewing your business records. Make sure that all of your information is current and accurate. If you have multiple owners, you may need to contact each one to confirm their details. If you choose not to file with us it’s a good idea to consult with your accountant or legal advisor to ensure you’ve covered everything required by the new rules.
Common Pitfalls to Avoid
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Incomplete Information: Make sure all fields are filled out correctly. Missing information can lead to delays or penalties. Our form submission portal ensures you don’t miss anything!
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Outdated Information: Ensure that all addresses, identification numbers, and other details are up to date. We cannot confirm this so make sure you enter accurate information.
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Incorrect Identification Numbers: Double-check ID numbers to avoid errors that could cause issues with your filing.
What Happens If You Don’t Provide the Right Information?
If you fail to provide complete and accurate information, your business could face fines or penalties. We can ensure that the form is complete, but only you can ensure it is accurate. Our form ensures completeness but if you enter any incorrect data you could still be fined and it could range from daily fines of up to $500 to more severe criminal penalties, including imprisonment and larger fines. The government takes this reporting very seriously, so it’s important to ensure all your information is correct and submitted on time.
Conclusion
Providing accurate and complete information in your BOI report is crucial to staying compliant with the new federal rules. By gathering and submitting the required details about your business and its owners through our secure and easy to use filing portal you help create a more transparent and trustworthy business environment. Make sure to review your records carefully and consult with professionals if needed to avoid any penalties.
