BOI Filing Requirement

What is the BOI Filing Requirement and Why Was it Created?

You may not have heard about this yet, but the Beneficial Ownership Information (BOI) filing requirement is a recent legal obligation that affects most small businesses, including corporations and LLCs. Courts have been involved and here is what you need to know:

This requirement was established under the Corporate Transparency Act (CTA), a law passed by the government to:

1. Combat financial crimes: By requiring companies to report information about their beneficial owners (those who own or control the company), law enforcement can better investigate and prevent crimes like money laundering and fraud.
2. Enhance national security: Preventing anonymous companies from operating in the U.S. helps hinder terrorist financing.
3. Promote economic stability: Transparent business practices foster trust, boost investor confidence, and create a stable economic environment.

While school psychologists would not typically pose risks, all businesses are required to follow the law.

Why You Need to Stay Tuned
The BOI filing requirement was recently challenged in court, and an injunction temporarily paused its enforcement. Then that injunction was lifted, but another court paused it again on December 27, 2024. As of now, the filing is optional, but at any point, the injunction could be lifted again and failing to comply with this law carries steep penalties. Before it was paused these included:

• Civil penalties of $591 per day for non-compliance.
• Up to 2 years in jail and $10,000 in criminal penalties for willful non-compliance.

If you own a business, it is essential to understand this requirement and stay tuned to take steps to meet the legal deadlines. You can choose to file now and not worry about it, or wait for the courts to make a final decision. I’ll provide all the key details you need to ensure compliance and protect your business below.

Deadlines, Penalties, and Filing Process

Who Must File?
The BOI filing requirement applies to many small businesses, including corporations, LLCs, and other similar entities registered to do business in the U.S. There are exemptions for certain types of entities, like publicly traded companies and some nonprofits, but most small businesses will need to file. Sole proprietors do not need to file.

Key Deadlines

• All deadlines have been lifted for now

How to File
Filing your BOI report is completely free and can be done online through the official government website: FINCEN.GOV. I personally filed my report in less than 10 minutes without any assistance.

Warning: Avoid Scams
There are many fraudulent websites and services charging fees to help you file. If a website asks for your credit card information, you are not on the government website. Some companies are charging as much as $800 to file for you, but the process is straightforward, and you can do it yourself for free.

Check the image below to see what the government website looks like.

As a business owner, I filed my BOI already as I do not want to worry and miss court decisions. Filing tells the Federal Government who owns my business, which is in my state corporation website open to the public anyway. You should check with your attorney for advice on what to do. I will try to update this page if anything changes with the courts, so feel free to check again.