BOI Report Filing Reminder

Harmony clients,

This is your friendly, regular reminder that as of January 1 this year, the US Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, has been accepting Beneficial Ownership Information Reports, or BOI Reports. These reports are part of the Corporate Transparency Act, or CTA, which went into effect in 2024. 

The CTA was enacted in 2021 as part of an effort to curb illicit finance by increasing the transparency of companies’ ownership structures. A long story short - if you own a business, you are likely subject to new reporting requirements about its ownership. Most corporations, LLCs, and limited partnerships will need to comply with this reporting, though a number of exemptions apply including if your company is a non-profit, publicly traded, or it satisfies the “large operating company” exemption.

Deadlines are approaching, and could already apply if your company was formed this year - reporting companies formed before 1/1/24 have until 1/1/25 to file their initial BOI reports, while newly formed companies (2024 on) must file their initial reports within 90 days of formation, and beginning in 2025, within 30 days.

These reports require specific personal information and are the business owner’s responsibility, but Harmony is happy to work with clients to prepare them in a separate engagement request. Just email us at admin@harmonycpa.com if you’d like our help filing your BOI report, or if you have any questions about whether you meet one of the exemptions. Find FinCEN’s extensive FAQ here.

TL;DR: If you own a business formed before 1/1/24, you most likely need to register with FinCEN by filing a BOI report before 1/1/25. If your business was formed this year, you need to do this within 90 days of its formation. Penalties for not complying can be $500 per day and include jail time, so don't ignore it. If you want to engage us to do the register for you, just reach out to admin@harmonycpa.com and we'll coordinate handling it for you.