UPDATED March 1st, 2025: ALERT [updated Feb. 19, 2025]: Beneficial ownership reporting requirements are back in effect, with a new deadline of March 21, 2025 for most companies. FinCEN will assess its options for further modifying deadlines. For more info, see notice.
Reference here from Financial Crimes Enforcement Network: https://fincen.gov/boi
If you’ve stumbled upon the term BOI Report and thought, “Is this something I really need, or is it just another acronym to keep accountants employed?” —you’re not alone. Let’s break it down for you in plain English and explain why this report is essential for your business.
What Is the BOI Report?
BOI stands for Beneficial Ownership Information, and this report is part of the Corporate Transparency Act (CTA). Starting in 2024, many businesses may be required to file it with the Financial Crimes Enforcement Network (FinCEN). Think of it as your business’s way of saying, “Hey, Uncle Sam, here’s who’s behind the scenes running this show.”
This report is a big deal. It aims to crack down on money laundering, fraud, and tax evasion by requiring companies to disclose who owns or controls them. Translation? It’s the federal government’s way of making sure everyone plays nice and stays accountable.
What should you do? Stay Up to Date
Watch the news and stay informed on whether or not the appeal will go through.
Do I Really Have to File One?
If your business is a corporation, LLC, or similar entity formed or registered in the U.S., chances are you need to file. Certain exceptions apply, like if your business is a publicly traded company or has over 20 employees and $5 million in annual revenue. But for small and medium-sized businesses, it’s likely a requirement.
Update on BOI: "WASHINGTON, D.C. –– With the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are once again back in effect. However, because the Department of the Treasury (Treasury) recognizes that reporting companies may need additional time to comply with their BOI reporting obligations, FinCEN is generally extending the deadline 30 calendar days from February 19, 2025, for most companies. Notably, in keeping with Treasury’s commitment to reducing regulatory burden on businesses, during this 30-day period FinCEN will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the most significant national security risks. FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lower-risk entities, including many U.S. small businesses."
Learn more below:
Here's some info on the BOI to read up on:
Filing It Yourself: Good news, its free to file!
Sure, you can file the BOI Report yourself—for free! You’ll need to gather information about every individual who meets the criteria for a beneficial owner (think names, addresses, birthdates, images of a drivers license or passport, and ID numbers). One typo, and you might find yourself starting over or, worse, explaining mistakes to FinCEN. That said, you can absolutely do it yourself by watching this video and then heading over to the official FinCEN website for more information and to get started. You can also check with your lawyer, legal filing partner, or CPA to see if they have a BOI reporting tool that you can use with a portal link to update any information later on. But if you’re already swimming in paperwork and would rather not add another form to the pile, we’ve got your back.
How A Bigger Bottom Line Can Help Your Business with BOI Reporting At A Bigger Bottom Line, we completely understand that your time is valuable, and dealing with government paperwork likely isn’t your preferred way to spend the day. (Although, if it is, no shame—we’re paperwork enthusiasts ourselves! Feel free to watch the above video and tackle this on your own. For everyone else, we’re here to make life easier.
Simply provide us with the necessary details, and we’ll manage the entire process to ensure it’s accurate and submitted promptly. Had a change in your business and need to update your report? Don’t worry—we’ve got that covered too! You will agree to a separate engagement agreement that spells out all the details.
Why have A Bigger Bottom Line File It for You?
We get it—paying for something you could do for free might sound unnecessary, and it's TRUE; you can save this money and do it yourself. But let’s break down why it might be worth it to have a trusted accountant file it for you:
Save Your Time: You’ve got better things to do than wrestle with government forms. Like, you know, running your business.
Expertise on Your Side: We’re accustomed to gathering this type of information and filing forms. We’ll make sure it’s done right the first time—no rejections, no stress.
Peace of Mind: Imagine the relief of knowing this is checked off your to-do list. Bliss!
Why Let Us Handle It?
At A Bigger Bottom Line, we live for this stuff (we know, we’re a little weird). Our team is here to make your life easier, so you can focus on growing your business while we handle the nitty-gritty details. Remember, this is a separate service apart from any other services you may have already signed up for at our firm (if you are a current or past client). This is because not all of our clients will need our help with this filing. Many already have or will file these on their own, so the service to have us help is separate from any other services. It is important to note that your accountant is not obligated to conduct this filing if written acceptance of this additional service agreement is not provided.
Here’s to keeping things compliant while growing that bottom line!
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