Important Deadlines for BOI Reporting and Late Filing Penalties: What You Need to Know

Oct 21, 20242 min read

As a business owner, knowing the rules and deadlines for Beneficial Ownership Information (BOI) reporting is crucial. This guide simplifies BOI reporting deadlines and non-compliance implications.

Understanding the BOI Reporting Deadlines

Deadlines for submitting your BOI report are determined by your company's registration date.

For companies established before January 1, 2024: The deadline is January 1, 2025. This gives established businesses ample time to prepare their reports.
For companies founded on or after January 1, 2024: You must submit your BOI report within 90 calendar days of your registration. This shorter timeframe highlights the importance of swift action for new entities.
For companies registered on January 1, 2025: The submission deadline tightens further, requiring the BOI report within 30 calendar days of registration. Quick compliance is necessary for these new businesses.

Additionally, if there are any changes in your company's information or beneficial ownership, you must file updated BOI reports within 30 days of these changes. Staying on top of this can prevent complications and penalties in the future.

The Consequences of Late BOI Filing

Understanding the penalties for failing to meet BOI reporting requirements can be a wake-up call for many business owners. According to the Corporate Transparency Act, missing these deadlines can lead to severe fines.

A civil penalty can be as high as $591 per day for each day the report remains unfiled. For instance, if your report is 10 days late, the total could reach over $5,900.

Moreover, if the violation is deemed willful, the consequences can escalate significantly. Offenders could face imprisonment for up to two years or fines of up to $10,000. Major violations include:

Willfully failing to file a BOI report.
Deliberately filing false information.
Not correcting or updating previously reported information.

Timely and accurate reporting safeguards your business from these risks.

What to Do if Company or Beneficial Owner Information Changes

Change is a normal part of any business. If there are updates to your company or its beneficial owners, prompt action is critical.

You must file an updated BOI report within 30 days following the change. By being proactive, you can avoid penalties and ensure compliance.

It's important to note that if updates occur to information about a company applicant already reported, an additional submission may not be necessary. Keeping organized records of your beneficial owners will streamline the reporting process and reduce the likelihood of errors.

Correcting Inaccuracies in Your BOI Report

Inaccurate reporting can have serious implications. If you identify errors in a previously filed BOI report, you must act swiftly to correct them.

Corrections should be made within 30 days of discovering the inaccuracies. This ensures that your business adheres to compliance regulations and avoids penalties for misreporting.

Delays in submitting corrections could lead to fines similar to those for late submissions, emphasizing the importance of accuracy and diligence. Thoroughly reviewing your reports before submission can save you from potential legal issues down the line.

Staying Compliant with BOI Reporting Requirements

You can file your BOI Report yourself here or you can contact our office at: office@handallc.com for assistance with filing your report.