BOI Reporting is Back: What Businesses Need to Know

Keeping up with changing regulations can feel like a constant uphill battle. We get it. That’s why we’re here to break down important updates, like the recent reinstatement of Beneficial Ownership Information (BOI) reporting.

FinCEN (Financial Crimes Enforcement Network) has announced that BOI reporting is back, and the new deadline for filing is March 21, 2025. Here’s what you need to know:

What exactly is BOI reporting?

BOI reporting is a requirement under the Corporate Transparency Act. Essentially, it requires most businesses to disclose information about their beneficial owners to FinCEN. This is designed to increase transparency and help combat financial crimes. While it might seem like just another task on your list, understanding and complying with BOI reporting is crucial for your business.

Who needs to file a BOI report?

The good news is that the filing process itself is relatively straightforward. Most businesses will need to file, including:

• Corporations
• S-Corporations
• Limited Liability Companies (LLCs) (both single-member and multi-member)
• Limited Liability Partnerships (LLPs)

It’s important to note that each legal entity is required to file a separate BOI report.

Are there any exceptions?

Yes, thankfully, there are some exceptions. Common exemptions include:

• Public companies traded on a U.S. securities exchange
• Certain financial institutions
• Large operating companies (those with more than 20 full-time employees in the U.S., a physical U.S. office, and over $5 million in annual revenue)

Important: Even if your company is generally exempt, you might still need to report ownership changes. When in doubt, it’s always best to double-check.

What’s the deadline for filing?

The deadline for your initial BOI report is March 21, 2025. If your business is formed after this date, or if there are any ownership changes, you’ll have 30 days to report the update to FinCEN.

What happens if I don’t file?

Failure to comply with BOI reporting can result in significant civil and criminal penalties, both for your company and the individuals involved. We want to help you avoid these penalties, which is why understanding and acting on this requirement is so important.

How do I actually file the report?

BOI reports must be filed electronically through the FinCEN website. To make the process easier, here are some helpful resources:

• FinCEN Beneficial Ownership Information Website (including informative tutorial video): link
• FinCEN Small Entity Compliance Guide: link
• FinCEN FAQ: link

Due to regulatory restrictions, DSB Rock Island cannot assist with this legal filing. We recommend consulting with your attorney for any questions or required assistance. We will continue to keep you updated on this and other policy changes as they occur.