Registered Agents Inc. Warns Small Businesses to Remember BOI Reporting Deadline

Registered Agents Inc., a leading provider of business formation services that has assisted over one million entrepreneurs nationwide, is alerting small businesses about the urgent need to comply with the upcoming Beneficial Ownership Information (BOI) reporting requirements mandated by the Corporate Transparency Act (CTA). With the deadline rapidly approaching on January 1, 2025, the company offers expert tips and resources to help businesses navigate the new regulations and avoid substantial penalties.

Understanding the BOI Reporting Requirements

Enacted to combat illicit activities such as money laundering and terrorism financing, the CTA requires most corporations, limited liability companies (LLCs), and other similar entities to file a BOI Report with the Financial Crimes Enforcement Network (FinCEN).

Who Must Report:

• Domestic Reporting Companies: Corporations, LLCs, and other entities created by filing with a secretary of state or similar office.
  • Resource: FinCEN's List of Exempt Entities

Key Deadlines:

• Existing Businesses (formed before January 1, 2024)
  • Must file their initial BOI Report by January 1, 2025
• Businesses Formed Between January 1, 2024, and December 31, 2024
  • Have 90 calendar days from the date they receive actual or public notice of their creation or registration to file their initial BOI Report
• Businesses Formed on or After January 1, 2025
  • Must file their initial BOI Report within 30 calendar days of receiving actual or public notice of their creation or registration

Penalties for Non-Compliance: Failure to file or submitting false information can result in civil penalties of up to $500 per day, criminal fines up to $10,000, and imprisonment for up to two years.

Business owners can file directly with FinCEN themselves or hire a third party like Registered Agents Inc to file for them.

A Trusted Partner for Entrepreneurs

With a proven track record of assisting over one million entrepreneurs in forming and managing their businesses, Registered Agents Inc. offers a comprehensive suite of services, including $25 BOI Report Filing Service.

“While some competitors in our industry have used the requirement as a way to gouge business owners, Registered Agents Inc want to reduce any friction around starting and maintaining businesses,” said Jon Garrison, Treasurer at Registered Agents Inc.

Expert Tips from Registered Agents Inc.

"Many small business owners are still unaware of these new requirements, which could lead to unintentional violations," said Garrison. "Our mission is to educate and support businesses to ensure full compliance and help them avoid severe penalties."

1. Assess Whether Your Business Must File:

• Review Exemptions: Certain entities, such as publicly traded companies, banks, and tax-exempt organizations, may be exempt.
• Resource: FinCEN's List of Exempt Entities

2. Identify Beneficial Owners and Company Applicants:

• Beneficial Owners: Individuals who own or control at least 25% of the company or exercise substantial control.
• Company Applicants: Individuals who filed the formation documents (for entities created after January 1, 2024).

3. Gather Required Information:

• For the Company:
  • Legal name and any trade names.
  • Principal business address.
  • Jurisdiction of formation.
  • Taxpayer Identification Number (TIN).
• For Each Beneficial Owner and Company Applicant:
  • Full legal name.
  • Date of birth.
  • Residential address.
  • Unique identifying number from an acceptable document (e.g., driver's license, passport).
  • An image of the identification document.

Note: You can apply for a FinCEN ID, which can be useful if you are reporting for multiple entities, but it is optional and not required to complete a BOI filing.

4. Prepare to File Electronically:

• FinCEN's Filing System: Reports must be filed electronically through FinCEN's secure filing system.
• Create an Account: Set up an account in advance to streamline the filing process.

5. Plan for Ongoing Compliance:

• Update Reports Promptly: Any changes in reported information must be updated within 30 days.
• Maintain Records: Keep detailed records to support the information provided in the BOI Report.

"Navigating these new requirements can be daunting for small businesses," added Garrison. "With our extensive experience assisting over one million entrepreneurs, we simplify the process, allowing business owners to focus on what they do best."

Additional Resources and Support

• Comprehensive Guide on BOI Reporting:
  Registered Agents Inc. BOI Reporting Resource 

About Registered Agents Inc.

Registered Agents Inc. is a trusted provider of business formation and compliance services, having assisted over one million entrepreneurs nationwide. Dedicated to supporting businesses of all sizes, the company offers expert guidance to simplify regulatory complexities and promote successful business operations. Services include business formation, registered agent services, compliance support, and more, all designed to empower entrepreneurs from inception to growth.

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