BOIR-ing But Important: What You Need to Know (And Why It’s Not as Bad as It Sounds!)
Let’s be honest—nobody gets excited about new reporting requirements, and the Beneficial Ownership Information Report (BOIR) sounds about as thrilling as watching paint dry. But stick with us here! This new federal rule, starting January 1, 2024, is actually super important for businesses like yours—and trust us, it’s not as scary as it sounds.
What’s the BOIR?
It’s a report that requires certain businesses to share details about their beneficial owners—basically, the people who:
Own 25% or more of the company, or
Have significant control over company decisions (like senior officers).
This is all part of an effort to increase transparency and crack down on things like money laundering and fraud.
Does this apply to you?
If your business is a corporation, LLC, or similar entity that was created by filing paperwork with your state, you’ll likely need to file. There are some exceptions (like large companies with 20+ employees and $5M+ in revenue), but most small businesses will need to comply.
How to File (It’s Free!)
Head over to FinCEN’s website: https://www.fincen.gov
Use the BOI E-Filing System (available starting January 1, 2024)
Submit your company info and details about your beneficial owners:
Full name
Date of birth
Address
A photo ID (like a passport or driver’s license).
Deadlines to Know
If your company existed before January 1, 2024: You have until January 1, 2025 to file.
If your company is formed after January 1, 2024: You’ll need to file within 90 days.
Updates: If something changes (like ownership or addresses), you’ll need to update the report within 30 days
What’s Next?
Now’s a great time to:
Identify who your beneficial owners are.
Collect the info you’ll need to file.
Remember: Filing is free, and staying compliant avoids penalties down the road.