WASHINGTON — A special resource has been made available to familiarize owners of small businesses like self-service laundries with Beneficial Ownership Information (BOI) reporting requirements prior to the January 1, 2025, deadline, says the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
For the required small business that ignores or otherwise fails to file the needed paperwork accurately by the deadline, the possible penalties can be significant.
The Beneficial Ownership Reporting Outreach and Education Toolkit can be found at the FinCEN website. It contains templates and sample content that has been structured to allow private, public, and non-profit organizations to share and amplify this important information. It includes general background on the reporting requirements, as well as templates for newsletters, websites, and emails; sample social media posts and images; and information on how to contact FinCEN.
The Corporate Transparency Act, a bipartisan law enacted this year to curb illicit finance by supporting law enforcement efforts, requires many small businesses to report basic information to the Federal government about the real people who ultimately own or control them.
A company may need to report if it is a corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe, or a foreign company that was registered to do business in any U.S. state or Indian tribe by such a filing.
Filing of the BOI report is quick, secure, and free of charge, FinCEN says. It expects that most companies will be able to file without the help of an attorney or accountant, and that the filing process for those with simple ownership structures may take 20 minutes or less.
Companies that existed before 2024 have until Jan. 1 to file, while companies created or registered in 2024 must file within 90 days of having received creation/registration notice.
A person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $591 for each day the violation continues, as well as criminal penalties of up to two years imprisonment and a fine of up to $10,000.
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
