facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Retired Military Finances 301: Business Owner? You Have a New Task on Your List Thumbnail

Retired Military Finances 301: Business Owner? You Have a New Task on Your List

Managing Your Finances

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.

Retired Military Finances 401: Preparing For a Business Valuation

Retired Military Finances 301: Business Formation

Retired Military Finances 201: 6 Questions to Ask When Hiring a CPA for Your Business

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.