Why do you need to file a BOI report?

In 2021, Congress passed the Corporate Transparency Act. This act requires companies operating in the U.S. to disclose information about the beneficial owners. Beneficial owners are individuals who ultimately hold control of the company. Congress passed this act to enhance transparency and prevent illicit activities through entities like shell companies. The disclosure is called a Beneficial Ownership Information (BOI) report and must be submitted to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury.

How to complete the BOI report in 3 easy steps with Mize CPAs

1. Contact your Mize relationship manager to get the process started
2. Schedule a call with our team to answer some questions about your company
3. We’ll file the report on your behalf and send you a confirmation when it’s all done

Why should you seek assistance with your BOI Report?

Partnering with a knowledgeable service provider like Mize CPAs can offer several advantages:

• Avoid penalties – Incorrectly filing or failing to file a BOI report can lead to criminal and civil penalties, including fines and even prison.
• Focus on what matters – With just a quick phone call to Mize and a few questions answered, we’ll handle the rest, ensuring your BOI report is completed accurately and efficiently. This allows you to maintain your focus on running your business.
• Rest easy – Filing your BOI report with Mize means you can trust that it’s done correctly. Rest assured, with Mize, you’ll be in full compliance with FinCEN regulations.

BOI FAQs

What is the Corporate Transparency Act?

The Corporate Transparency Act (CTA), enacted in 2021, mandates certain U.S. companies to report their beneficial owners to FinCEN to prevent illicit activities through opaque entities. It applies to corporations and LLCs, excluding publicly traded companies and certain large entities, with penalties for non-compliance.

Who is a beneficial owner?

A beneficial owner is an individual who ultimately owns or controls a company. This person has significant influence over the company, either through direct ownership, voting rights, or other means. In the context of the Corporate Transparency Act, beneficial owners are the individuals for whom companies must provide information to FinCEN, detailing their identity to enhance transparency.

What are the penalties for not filing?

The penalties for not filing a Beneficial Ownership Information (BOI) report are quite severe. Failure to comply can lead to criminal penalties, including imprisonment for up to two years and/or a fine of up to $10,000. Additionally, there is a civil penalty of $591 per day for each day the violation continues.

What types of companies are exempt from filing a BOI report?

Certain companies are exempt from filing a Beneficial Ownership Information (BOI) report under the Corporate Transparency Act. These include publicly traded companies, nonprofits, and specific large operating companies. A comprehensive list of the 23 exempt entity types is available in FinCEN’s Small Entity Compliance Guide, which provides checklists to determine eligibility for exemption. It’s important for companies to review this guide or consult with a professional to understand if they qualify for an exemption.

For more information about how Mize CPAs can help you file your BOI report, contact Brent Rill, CPA.