Introduction
With the rise of new compliance requirements for businesses, many small business owners are asking: “Is BOI filing legit?” The short answer is yes—BOI (Beneficial Ownership Information) filing is 100% legitimate and required by U.S. federal law under the Corporate Transparency Act (CTA). Here’s what you need to know to stay informed and compliant.
What Is BOI Filing?
BOI filing refers to the mandatory reporting of beneficial ownership details to FinCEN (Financial Crimes Enforcement Network)—a division of the U.S. Department of the Treasury. It requires most small corporations, LLCs, and similar entities to disclose the personal details of individuals who own or control the company.
Is BOI Filing Legit?
Yes, BOI filing is a legal requirement enacted through the Corporate Transparency Act, which took effect on January 1, 2024. FinCEN is the official government body overseeing this requirement.
Key Facts:
- Backed by Federal Law: CTA was passed by Congress to improve transparency and prevent money laundering.
- Mandatory Compliance: Nearly all LLCs and corporations must file unless they fall under one of the few exemptions.
- Handled by FinCEN: The filing must be done through the official BOI E-Filing System.
Beware of Scams
Because BOI filing is new, scammers may send fake emails or letters requesting payment or sensitive data. Keep these tips in mind:
- Only use official channels (FinCEN or a trusted service provider).
- No fees are required to file directly with FinCEN.
- Always verify any third-party services offering to help with BOI filings.
Why BOI Filing Matters
- Avoid Penalties: Non-compliance can lead to fines of $500/day or even criminal charges.
- Stay Legit: Filing keeps your business in good standing.
- Build Transparency: It improves the credibility of your business in financial and legal matters.
Conclusion
So, is BOI filing legit? Absolutely. It’s a federally required process that protects your business from legal consequences and supports financial transparency. Ensure you file correctly and stay alert for fraudulent requests.
