Yes, filing a BOI (Beneficial Ownership Information) report is mandatory for most LLCs, corporations, and other U.S. business entities under the Corporate Transparency Act (CTA). The rule, enforced by FinCEN (Financial Crimes Enforcement Network), aims to combat illegal activities such as money laundering and tax fraud.
Who Must File a BOI Report?
The following types of entities are generally required to file:
- LLCs and corporations formed in the U.S.
- Foreign companies registered to do business in the U.S.
- Other similar entities created through state registration
Exemptions include:
- Large operating companies with 20+ full-time employees and $5M+ revenue
- Certain regulated entities like banks, insurance companies, and nonprofits
Deadlines to File BOI
- Formed before January 1, 2024: Deadline is January 1, 2025
- Formed in 2024: Deadline is 90 days after formation
- Formed after January 1, 2025: Deadline will be 30 days after formation
Penalties for Not Filing
If you fail to file the BOI report as required:
- Fines up to $500 per day
- Criminal penalties: up to 2 years in prison and/or $10,000 in fines
Clearly, filing is not optional unless your business qualifies for an exemption.
Conclusion: Is Filing BOI Mandatory?
Yes, filing BOI is absolutely mandatory for most small businesses in the U.S. unless specifically exempt. Make sure you understand your obligations to avoid steep penalties and maintain compliance.
