Failing to file a BOI (Beneficial Ownership Information) report can result in serious penalties, including fines and even imprisonment. The Corporate Transparency Act (CTA) makes BOI filing mandatory for most small U.S. businesses starting January 1, 2024.
Civil Penalties
If you don’t file or update your BOI report on time, you could face:
- $500 per day for each day the violation continues
- Up to a $10,000 maximum fine
Criminal Penalties
Willfully failing to file or knowingly providing false information may lead to:
- Up to 2 years in prison
- Additional criminal fines
These penalties apply to owners, senior officers, or any person responsible for compliance.
Who Must File?
Most corporations, LLCs, and other entities formed or registered in the U.S. are required to file—unless they meet one of the 23 exemptions listed by FinCEN.
How to Avoid Penalties
- File your BOI report on time through the official FinCEN portal.
- Keep your information up to date (report any changes within 30 days).
- Consider working with compliance experts like FormLLC.us to ensure accuracy.
Final Thoughts
What is the penalty for not filing a BOI report? It can be costly and even criminal. Avoid risk by filing early and staying compliant with FinCEN’s requirements.
