RLS Professional Services
What is the BOIR and Does Your Business Need to File?
Is your business required to file a BOIR? Learn the details of the Corporate Transparency Act and how to stay compliant.
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Beneficial Ownership Information Report (BOIR) Filing
Navigating new compliance requirements like the Beneficial Ownership Information Report (BOIR) doesn’t have to be a headache. RLS Professional Services is here to make sure your filing is accurate, on time, and fully compliant with the Corporate Transparency Act (CTA).
Here’s how we can help:
Penalties of up to $500 for each day the violation continues
What is BOIR?
The BOIR is a mandatory filing for certain U.S. businesses under the CTA. Its purpose? To increase transparency by requiring companies to report detailed information about their "beneficial owners" to the Financial Crimes Enforcement Network (FinCEN). By tracking beneficial ownership, the government aims to fight illegal activities like money laundering, tax evasion, and financing of terrorism.
Who needs to file?
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US companies with less than $5 million in gross sales
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Foreign companies registered to do business in the US
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Companies with beneficial ownership
Who Counts as a Beneficial Owner?
A beneficial owner is anyone who:
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Owns at least 25% of a company, directly or indirectly
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Has significant control over the company’s decisions or management
For each beneficial owner, businesses must report:
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Full legal name
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Date of birth
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Residential address
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An identifying number from a government-issued ID, like a driver’s license or passport
Does My Business Need to File a BOIR?
If you operate a corporation, LLC, or a similar entity registered in the U.S., filing a BOIR may be mandatory. Here’s a quick rundown:
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For Existing Businesses: Companies registered before January 1, 2024, must file by January 1, 2025.
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For New Businesses: If registered on or after January 1, 2024, you have 30 days from registration to file.
Certain entities, such as publicly traded companies, are exempt. Need help determining your filing requirements? Our team can help you verify whether your business qualifies.
BOIR Filing Penalties You Should Know
Accurate and timely filing isn’t just a best practice; it’s essential. Missing deadlines or submitting incorrect information can result in serious penalties.
1. Civil Penalties
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Fines: Late or inaccurate reports can incur civil fines of up to $500 per day.
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Accumulation: These daily fines can add up quickly, creating a significant financial burden.
2. Criminal Penalties
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Intentional Violations: Willfully failing to file or submitting false information can lead to severe penalties.
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Fines: Up to $10,000.
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Imprisonment: Up to two years if the non-compliance or false information is willful.
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3. Penalties for Willful Misrepresentation
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Intentional Falsehoods: Businesses or individuals who knowingly misrepresent beneficial ownership details can face both civil and criminal repercussions.
4. Correcting a Filing
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Amendments: If you realize there’s an error in your BOIR, you have 30 days from discovery to correct it. Failing to amend the report within this time frame can also trigger penalties.
How to Avoid BOIR Penalties
To avoid these penalties:
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File by the January 1, 2025 deadline (for businesses registered before January 1, 2024).
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Provide accurate, complete information on all beneficial owners.
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Update your BOIR within 30 days of any ownership or control changes.
What’s Next? Here’s How RLS Professional Services Can Help
With RLS Professional Services, BOIR filing is straightforward. Our team offers:
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Requirement Assessment: We verify if your business needs to file.
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Information Gathering: We help collect the required details for each beneficial owner.
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Filing & Compliance: We’ll file accurately and on time, minimizing the risk of penalties.
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