BOI Reporting: Your Guide to Yet Another Fun Federal Filing Requirement
What You Need to Know About Beneficial Ownership Information Reporting
** This post is historical only. After an extensive legal battle, the BOI filing requirement has been suspended for most companies in the United States. **
Look who's back with more paperwork! Just when you thought you had enough government forms to wallpaper your office, the Treasury Department said "Hold my coffee" and introduced BOI reporting. Don't worry – we'll walk you through this latest bureaucratic adventure with minimal screaming into the void.
What on Earth is BOI Reporting?
BOI (Beneficial Ownership Information) reporting is the government's latest attempt to make sure businesses aren't secretly run by supervillains or money launderers. Think of it as LinkedIn for business owners, but mandatory and with more serious consequences for ghosting. Let's get into the details. We'll try to keep our eyerolling to a minimum!
The Good News for Our Nonprofit Friends
If you're running a nonprofit, you might be one of the lucky ones who gets to sit this one out (cue the heavenly choir). You're probably exempt if:
You've got that sweet 501(c) status from the IRS
You're a 527(a) political organization (though you've got your own paperwork nightmare to deal with)
You're a 4947(a)(1) charitable trust (congratulations on understanding what those numbers mean)
BUT WAIT! (There's always a "but," right?)
Still waiting on your IRS determination letter? Sadly, you'll need to join the BOI party until it arrives
Running a nonprofit subsidiary that's structured as an LLC? Nice try, but you might need to file
Not sure if you're exempt? That's what we're here for! 😉
Who Else Needs to Report?
If you're:
A corporation (S-corp, C-corp, or Benefit Corp) or LLC of any kind (basically, if you've filed paperwork with your state that doesn't involve parking tickets)
A foreign company doing business in the US (welcome to our paperwork party!)
Then congratulations! You're probably on the guest list for this exciting new filing requirement.
Unless you're:
A public company (already drowning in SEC filings)
A big shot with 20+ full-time employees and $5 million in gross receipts
A bank or credit union (you've got enough regulatory fun already)
What Information Do They Want? (Hint: Everything but Your Coffee Order)
For each beneficial owner (anyone who owns 25% or more of your organization or has "substantial control" – a term clearly written by people who love ambiguity), you'll need to report:
Their full legal name (including that middle name they've been trying to hide)
Date of birth (yes, that's going to be awkward to ask for)
Current residential address (no, their favorite coffee shop doesn't count)
ID number (driver's license, passport, or secret agent badge)
A picture of said ID (think Instagram, but for the government)
Deadlines Because We All Love Those
Created your company before 2024? You've got until December 31, 2024 (mark your calendar, set seventeen alarms)
Started in 2024? You get 90 days (how generous!)
After January 1, 2025? Just 30 days (they're really tightening the screws)
Something changes? The owners/substantial control individuals change? Get a new ID #? Move location? 30 days to update (because apparently the government thinks we're all just sitting around waiting to file updates)
Special Notes for Our Nonprofit Superheroes
For those nonprofits that don't qualify for exemption (our condolences) please note:
Board members usually don't count as beneficial owners (finally, a break!)
Executive directors might need to be reported
Having grant-making authority alone doesn't make you a beneficial owner (but it might make you popular at parties)
How to Not Mess This Up - A Helpful Guide
**Don't Procrastinate**: Yes, we know that's your favorite strategy, but maybe not this time
**Keep Good Records**: File them somewhere better than that pile of "to-do" sticky notes on your desk
**Check FinCEN's Website**: It's not exactly Netflix, but it's required reading
**Contact Us**: Because we actually enjoy this stuff (yes, we know we need help)
The "Or Else" Section
This reporting isn't something you can afford to put off! Failure to file can result in:
Fines of $500 per day (that's a lot of lattes)
Up to $10,000 in criminal penalties (ouch)
Up to two years of free government housing (aka jail, and not the fun Monopoly kind)
How We Can Help - Because We're Nice Like That
Look, we're accountants who love a good spreadsheet, but even we know when to bring in reinforcements. That's why we've partnered with the BOI filing experts at BOI Efile by Truss to make your life easier.
Think of it this way – we're still your go-to financial wizards for all things accounting, but for BOI filing, we've found you a specialist who eats beneficial ownership reports for breakfast. It's like when your general practitioner refers you to a specialist – except instead of dealing with your weird rash, they're handling your BOI filing (and trust us, the paperwork is way less itchy).
Don't let BOI reporting give you a headache. Between your favorite accounting firm (that's us!) and our filing partner, we've got you covered. Now, back to those exciting nonprofit financial statements... ;)
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*Legal Disclaimer (because our lawyers insist): This blog post is for informational purposes only and shouldn't be confused with legal advice. If you need actual legal advice, please consult a lawyer who won't make as many jokes.*
