The Corporate Transparency Act (CTA) has introduced significant changes for businesses, requiring compliance with BOI reporting deadlines and the reporting of Beneficial Ownership Information (BOI). While some have filed suits claiming these requirements are unconstitutional, all challenges have been overturned to date. The reality is clear:
BOI reporting isn’t going away.
The January 1, 2025, deadline is just weeks away, and the consequences of missing it are steep. With penalties starting at $591 per day, there’s no time to wait. Whether you’re helping clients file for the first time or preparing for ongoing updates, the time to act is now.
Why BOI Reporting Deadlines Matter
The CTA mandates that most businesses file BOI reports with the Financial Crimes Enforcement Network (FinCEN). These filings are mandatory unless a business qualifies for specific exemptions, such as publicly traded companies, and non-compliance can result in severe penalties.
Here’s what your clients need to know:
- BOI Deadline for Existing Businesses: All entities formed or registered before January 1, 2024, must file their Beneficial Ownership Information (BOI) reports by January 1, 2025.
- BOI Deadline for New Businesses: Entities formed or registered on or after January 1, 2024, must file their initial BOI reports within 30 days of formation or registration.
- Ongoing Filing Obligations: After the initial report, any changes in ownership, beneficial owners, or business addresses must be reported to FinCEN within 30 days of the change.
BOI reporting is not a one-time task. It’s a permanent obligation that evolves as businesses grow and change. Waiting too long to act—or assuming the rules will change—puts your clients at risk.
The Risk of Waiting Until the Last Minute
With less than 30 days to go, the risks of delay are real. The holiday season and year-end responsibilities can make it easy for filings to slip through the cracks, especially for businesses with complex ownership structures.
Ask yourself:
- Are your clients fully prepared to meet their BOI reporting deadlines?
- Do they understand the risks of waiting or missing their filing obligations?
- Is your firm equipped to manage ongoing compliance requirements beyond January 2025?
Delaying filings raises the risk of errors, missed deadlines, and costly penalties. Taking action now helps your clients avoid these pitfalls and ensures compliance remains on track.
Common Triggers and Questions About BOI Reporting Deadlines
Filing Beneficial Ownership Information (BOI) isn’t limited to meeting the initial deadline. Throughout a business’s lifecycle, various events can trigger updates required to meet BOI reporting deadlines. Here are some of the most common scenarios and FAQs to help guide your clients:
1. Does an address change for an owner require an update?
Yes. If a beneficial owner’s address changes, it must be updated in the BOI report within 30 days of the documented change. Address changes are one of the most frequent triggers for updates.
2. What about changes to the board or owners with substantial control or equity?
Yes. Adding or removing a person with substantial control or an equity owner requires an update to the BOI filing.
3. What other updates should we look for during tax time?
Common triggers include:
- Changes to office locations or a new registered business address.
- Filing for a new DBA (Doing Business As).
- Creation of new entities for business ventures.
4. Does marriage or divorce in a community property state require an update?
Yes. In community property states, changes in marital status (marriage or divorce) can affect beneficial ownership. States to watch include:
- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
5. What about expiring IDs?
Expiring IDs do not require updates as long as the address and ID number remain unchanged. However, some states are introducing procedures that assign new ID numbers upon reissuance. If your client resides in one of these states, ensure their updated ID number is accurately reflected in their records.
6. Does dissolving a business require a report?
No. If the business is completely dissolved in 2025, no additional BOI filing is required.
How FincenFetch Simplifies BOI Compliance
Managing multiple clients, tight deadlines, and ongoing updates manually can be overwhelming. FincenFetch’s software simplifies the process, making compliance management more efficient and stress-free.
Here’s how FincenFetch helps:
- Streamlined Filing: Automates the process to ensure accuracy and timely submission.
- Proactive Alerts: Tracks changes in real-time and notifies you of upcoming deadlines.
- Simplified Updates: Makes it easy to file updates for ownership, address, or other changes within the required 30-day window.
For firms already using FincenFetch, renewing now ensures uninterrupted access to the tools and support you rely on. For those still managing BOI reporting deadlines manually, it’s time to make the switch.
Your Next Steps
With the January 1, 2025, deadline fast approaching, it’s critical to act now:
- File Now: Encourage your clients to complete their BOI filings early to avoid the stress and risks of last-minute submissions as the deadline approaches.
- Educate Clients: Help them understand that BOI compliance doesn’t end after January 2025—ongoing updates are mandatory.
- Renew or Adopt FincenFetch: Ensure your firm is equipped with the right tools to handle current filings and ongoing compliance requirements with ease.
BOI Reporting Deadlines Aren’t Temporary—They’re Here to Stay
The Corporate Transparency Act has made BOI reporting a critical compliance requirement for businesses, with obligations that go beyond the initial submission. Filing by January 2025 is essential, but compliance doesn’t end there—mandatory updates for ownership changes, address updates, and other key events are required to stay compliant.
With the deadline fast approaching and enforcement ramping up, it’s clear that BOI reporting isn’t going away. FincenFetch helps you and your clients stay compliant, avoid penalties, and simplify the entire process.
Don’t wait—renew or schedule a demo today to ensure you’re ready for BOI filing in 2025.
