Starting a new business is an exciting endeavor filled with potential and growth opportunities. However, along with the excitement comes a responsibility to comply with various regulatory requirements that ensure the integrity and legality of your business operations. One of the most crucial, yet often overlooked, obligations is filing the FinCEN Beneficial Ownership Information (BOI) Report.

What is the FinCEN Beneficial Ownership Report?

The BOI Report is a critical document required by the U.S. Financial Crimes Enforcement Network (FinCEN). This report mandates that businesses disclose detailed information about their “beneficial owners”—individuals who have substantial control or ownership over the entity. Typically, this includes anyone who owns 25% or more of the company, or who has significant influence over the company’s decisions.

Why is it Important?

  1. Combating Financial Crimes: The primary purpose of the BOI Report is to enhance transparency within the corporate structure. By requiring businesses to disclose their beneficial owners, FinCEN aims to prevent criminals from using shell companies to engage in money laundering, tax evasion, and other illicit activities.
  2. Legal Compliance: Failure to file the BOI Report can result in significant penalties. For new businesses, this can mean hefty fines and possible legal action, which can jeopardize your company’s future. Filing the report ensures that your business is compliant with federal regulations and avoids these potentially damaging consequences. The fines FinCEN impose are no joke. Anyone found guilty of willfully not filing a report can be fined up to $591 per day, a max of $10,000 fine, and two years prison time as of the date this blog was written.
  3. Building Trust and Credibility: Transparency in ownership builds trust with stakeholders, including investors, customers, and partners. Demonstrating that your business is compliant with FinCEN’s regulations signals that you are running a legitimate and ethical operation, which can enhance your company’s reputation and attract more business opportunities.
  4. Streamlined Regulatory Environment: The BOI Report contributes to a more streamlined regulatory environment by reducing the chances of your business being subject to additional scrutiny or audits. Compliance with these requirements allows you to focus more on growing your business and less on navigating legal hurdles.

Who Needs to File?

Most new and established businesses formed in the U.S., including corporations, limited liability companies (LLCs), and similar entities, are required to file the BOI Report. However, there are some exemptions, such as certain regulated entities and inactive businesses. It’s essential to consult with a legal or financial professional to determine your specific obligations.

How to File?

The BOI Report must be filed electronically through FinCEN’s secure filing system, available at FinCEN.gov. It requires you to provide the name, date of birth, address, and an identifying number (like a Social Security Number) for each beneficial owner. The report should be updated whenever there are changes in ownership or control to ensure continued compliance.

Why You Should Hire a Professional

Filing the Beneficial Ownership Report can be complex, especially for new business owners who are already juggling multiple responsibilities. This is where a professional company like Moore Financial Services can make a significant difference.

Moore Financial Services specializes in business consulting, compliance, and business tax preparation, and our team has the expertise to ensure that your BOI Report is filed accurately and on time. By partnering with us, you can avoid costly mistakes, stay compliant with federal regulations, and focus on what truly matters—growing your business.

Get Professional Help

Don’t leave your compliance to chance. Contact Moore Financial Services today and let us handle the complexities of filing your FinCEN Beneficial Ownership Report. With our professional guidance, you can ensure your business is fully compliant and positioned for long-term success.

Visit our website or give us a call to get started!



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