So, when you retired from the military you decided to start a business. Good on ya. You’re probably pretty busy keeping up with all the queep you’re required to do by the Feds, State and County/City. Get ready to add a new task starting now. Enter the Beneficial Ownership Information (BOI) Report.
What is the BOI Report and Who Needs to File It?
The BOI Report is a new report required by the Financial Crimes Enforcement Network (FINCEN). The BOI needs to be filed by any company that is a reporting company. It basically lists personal information about the owners of the company and the intent is to prevent/identify money laundering.
What is a reporting company? At its most basic level a reporting company is any company that is created by filing of a document with a secretary of state or any similar office under the law of a State or Indian tribe. In case you’re wondering that includes your LLC and if you’re organized as a corporation, you’re required to file as well. Some types of companies are exempted. Essentially, if you’re company is regulated by a Federal entity, then you may be exempt.
When is the BOI Report Due?
The due date for the BOI report depends on when you company is/was formed. If your company existed prior to 1 Jan 24, you have until 31 Dec 24 to file the BOI Report. Companies formed between 1 Jan 24 and 1 Jan 25 have 90 calendar days after creation or registration to file the BOI Report. After that time period you have 30 calendar days to file.
What Happens if I Don’t File the BOI Report?
FINCEN is serious about this report. If you willfully fail to file you could be subject to criminal or civil penalties. Currently, the civil penalties are $500 per day that the violation continues. Criminal penalties Include up to two years in jail and/or a fine of up to $10,000. Senior officers of the company may be held personally accountable for the failure to file.
How Often do I Need to File the BOI Report?
Filing the BOI report is a one-time requirement (per company) but you’re not done when you file the report. The BOI report must be updated when data on the form changes. This could include things like an address change of an owner, a telephone number change (again for an owner) or could include adding a new owner to the firm. The same time limits listed above apply
Where do I File the BOI Report?
You file the BOI Report at the FINCEN website: https://www.fincen.gov/boi
Where can I Get More Information about the BOI Report?
FINCEN has a pretty useful (read layman friendly) pamphlet at BOI Small Compliance Guide v1.1 (fincen.gov)
Military Finances are Different
The BOI report requirement is not unique to Active and Retired Senior Military Officers and NCOs. That isn’t always the case though. You have unique benefits and issues that your civilian counterparts don’t have. That’s why we think you should work with a Financial Planner or Advisor that deals with those military specific items each and every day. If you’d like to find out how we do things, use the button below to schedule a free initial consultation.