Do you own a small business? If so, chances are you will need to file a BOIR with FinCEN.gov. If this is the first you’re hearing of a BOIR, you’re not alone.
FinCEN (Financial Crimes Enforcement Network) is a bureau of the US Department of the Treasury. Starting January 1st, 2024, FinCEN will begin requiring most small businesses to file a BOIR, or Beneficial Ownership Information Report, in which they will name the owners or controlling entities of their company. Those required to file this new report include LLC’s, partnerships, trusts, corporations, and other small entities.
The reason for this new reporting is simple—in order to curb financial crimes such as funding terrorism through shell companies, most smaller businesses will need to prove they are legitimate and not a “front” or “mailbox” company through ownership identification in the BOIR.
How do you know if your small business must file a BOI report? To be safe, we recommend that if you filed your business with the Oregon Secretary of State's office (or your current state's SOS office), then you should file a BOIR. However, FinCEN explains who must file and who may be exempt here: Small Entity Compliance Guide. Please note that even if your type of business is on the possible exemption list on page 4 of the guide, you still may not be fully exempt. You will need to refer to the full compliance guide to determine if your entity is or is not required to file.
The due date to file is January 1st, 2025. We strongly suggest filing your BOI report on time as penalties could include a $591 fine for each day the filing is late.
Read more about BOI reporting on FinCEN’s web page here: Financial Crimes Enforcement Network BOI.
In the coming weeks, Witzig CPA will provide more information on BOI reporting and filing instructions; however, we strongly advise referring to the FinCEN website if you have any questions. Entity owners are ultimately responsible for making sure their business has filed their BOI report correctly and on time.
To file your business BOI Report, click here: BOI E-FILING
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