Introduction
The BOI (Beneficial Ownership Information) filing requirement under the Corporate Transparency Act (CTA) is now in effect, and businesses must comply to avoid legal consequences. But what is the penalty for not filing BOI with FinCEN?
If your business qualifies for BOI reporting and fails to submit the required information, you may face serious civil and criminal penalties.
What Is BOI Filing?
BOI filing requires companies to report the identities of their beneficial owners—those who own at least 25% or control the business—to the Financial Crimes Enforcement Network (FinCEN).
This rule applies to most small businesses and is designed to combat money laundering, fraud, and terrorist financing.
What Is the Penalty for Not Filing BOI?
Failing to file the BOI report—or filing false or incomplete information—can lead to:
1. Civil Penalties
- $500 per day for each day the violation continues
- These fines can add up quickly and may continue until the report is properly submitted
2. Criminal Penalties
- Up to $10,000 in fines
- Up to 2 years in prison for willful noncompliance or false filings
These penalties apply not just to the company, but also to individuals responsible for filing, such as owners or officers.
How to Avoid Penalties
To stay compliant:
- Determine if your business must file a BOI report
- Collect accurate beneficial ownership details
- File electronically at FinCEN’s BOI E-Filing website
- Meet your deadlines:
- By Jan 1, 2025 for businesses formed before 2024
- Within 90 days for those formed in 2024
- Within 30 days for those formed after Jan 1, 2025
Conclusion
What is the penalty for not filing BOI? It can be steep—$500 per day, thousands in fines, and even jail time. Compliance is not optional.
Avoid penalties by filing early and accurately. Need help? Visit FormLLC.us to get professional assistance with your BOI report filing.
