BOI Reporting Deadline: March 21, 2025 - Are You Compliant?
Beneficial Ownership Information reporting isn't annual, but missing the March 21 deadline could cost you. Here's what every business owner needs to know.
Tenicia Moulden, Esq.
The Entrepreneur's Counsel
The Corporate Transparency Act requires most U.S. businesses to file Beneficial Ownership Information (BOI) reports with FinCEN. With the deadline of March 21, 2025 approaching, it's critical that business owners understand their obligations.
Who Must File?
Most small businesses formed or registered to do business in the United States are "reporting companies" under the Act. This includes:
- Limited Liability Companies (LLCs)
- Corporations
- Limited partnerships
- Any entity created by filing with a Secretary of State
Important: This Is NOT an Annual Requirement
Unlike many business filings, BOI reporting is not an annual requirement. You file once when you form your company, and then only update if information changes. However, missing the initial deadline can result in significant penalties.
What Information Is Required?
Your BOI report must include:
- Company information: Legal name, DBAs, address, EIN
- Beneficial owner details: Anyone owning 25% or more, or exercising substantial control
- Personal information: Full legal name, date of birth, address, and ID number from acceptable documents
Penalties for Non-Compliance
The penalties for failing to file are severe:
- Civil penalties up to $500 per day
- Criminal penalties up to $10,000 and/or 2 years imprisonment
- Both willful and negligent failures can be prosecuted
Updates and Corrections
After your initial filing, you must:
- Update within 30 days of any change in beneficial ownership
- Correct inaccurate information within 30 days of discovery
- File within 30 days of forming a new company
Action Items Before March 21, 2025
- Determine if your company qualifies as a "reporting company"
- Identify all beneficial owners (25% or more ownership or substantial control)
- Gather required documentation for each beneficial owner
- File your report through FinCEN's online portal
- Save confirmation of filing for your records
Don't Wait Until the Last Minute
With millions of businesses required to file, the FinCEN system may experience delays as the deadline approaches. File early to avoid technical issues and ensure compliance. Remember, this is a one-time filing that protects your business from significant penalties – make it a priority today.