FinCEN - Beneficial Ownership Information Report. Fines, maybe jail awaits if you don’t file it.
The men in black from the Department of the Treasury — They want to get real familiar with us freelancers.
The ‘don’t blame me’ blurb: I am not a financial advisor, portfolio manager, or accountant. This is not tax or investment advice; it’s information to get you going. Please consult your trusty professional and do your due diligence. Carry-on!
UPDATE: As of Dec 27th, 2024: The deadline is back on hold due to another court decision. You can’t make this up. Check here for updates: https://www.fincen.gov/boi
UPDATE: As of Dec 23rd, 2024: Merry Christmas! Another court decision turned it back on. For most of us, the deadline is now Jan 13th; for newer companies, there is a longer deadline.
UPDATE: As of Dec 3rd, 2024: There is a deadline suspension due to a Texas Federal court case.
Yes, you must fill out another fun form, or you could be fined, jailed, or both. I’m not kidding. All I seem to do lately is write posts on the Feds fining or jailing us for not doing paperwork.
The skinny:
This is new, introduced in 2024.
YOU MUST FILE by January 1, 2025 The deadline is currently suspended.
LLC, S-Corp, C-Corp, and any other business entity registered with a Secretary of State must complete the report.
Sole Proprietors: You should be exempt from filing a BOI Report (but check with your accountant to be sure!).
Fines await if you are late, imprisonment if the Feds think you’re taking the piss. For a ‘willful violation,’ a $10,000 fine and up to two years imprisonment. A civil penalty of $591/day fine for late filing.
Fill it out online here (luckily, it’s not that complicated). https://boiefiling.fincen.gov
You only have to do it once if nothing changes regarding your company’s name or ownership. See below for what constitutes a change.
Why does this exist? It’s not really after people like us. The Feds are trying to get at who exactly owns the company. Some register their companies with an acting agent, not the real owner.
WARNING: Watch for fake websites. This is the only website you should use: https://www.fincen.gov
FinCEN and the Beneficial Ownership Information Report
Alright, let’s dive into the thrilling world of financial regulations. Joy. It’s time to talk about FinCEN and the oh-so-exciting Beneficial Ownership Information (BOI) Report. Get ready to spice up your compliance game.
What is FinCEN?
The Financial Crimes Enforcement Network, or FinCEN, is the U.S. Department of the Treasury’s watchdog. It is here to sniff out money laundering, stop the bad guys, and ensure everyone’s playing fair in the financial sandbox. Basically, it is the men in black of money laundering and financial skullduggery.
Beneficial Ownership: Who’s Really in Charge?
Beneficial ownership isn’t about who’s sitting in the big chair at the boardroom table—it’s about who really pulls the strings, who is the real owner. I assume it’s to stop the long-practiced maze of shell companies people use to hide from the Feds, and we freelancers and single-person businesses are getting caught up in it.
Filing Your BOI Report
I completed the online form in about 10 minutes; it’s pretty easy to fill out, and that’s the good part. Fill it out online here: https://www.fincen.gov
** BE AWARE OF FAKE WEBSITES pretending to be the BOI website**
How often do you have to file the BOI report?
If your company’s details, such as the name and ownership, do not change, it should be one-and-done. If something does change, like changing the name, adding a DBA (Doing Business As — it’s having a trade name, like a brand associated with your company), or adding another owner, you must file an update within 30 days of the change.
Watch out for the change in address under contact details; that’s a likely one that many will need to update.
Changes that require a BOI update:
CONTACT DETAILS
Change in: Phone number/address/driver’s license or passport details/marital status
COMPANY DETAILS
Change in: Company name or DBA/phone number/website/line of business
OWNERSHIP
Change in: Ownership/management/control
Mess Up and Pay the Price
Ignoring these requirements isn’t an option unless you enjoy forking-over up to $591 per day in civil penalties or facing criminal charges with a $10,000 fine and up to two years in prison. The BOI report has civil (fines only) and criminal penalties (you know, a criminal record and jail). These Treasury Men in Black types are not fooling around.
The Bottom Line
Filing a Beneficial Ownership Information Report with FINCEN might not be the highlight of your year, but it’s crucial for keeping things above board. So, grab a coffee (or something stronger), dive into the paperwork, and get it done.
Your wallet—and possibly your freedom—will thank you.
FinCEN - Beneficial Ownership Information Report FAQ
https://www.fincen.gov/boi-faqs#C_6
Sections:
B.2 — When to file
C.6 — Info on Sole Proprietorship exclusions
K.2 — Penalties
File the report here:
https://boiefiling.fincen.gov/