Update (3/2/25):
The U.S. Treasury Department said it will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule and it will not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners under the existing regulatory deadlines.
Additionally, the department said it will issue proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.
Update (2/26/25):
As of Feb. 19, beneficial ownership reporting requirements are back in effect with a new deadline of March 21 for most companies.
Update (1/2/25):
Despite developments in ongoing litigation, reporting companies are still not currently required to file BOI, according to the FinCEN website. Reporting companies may continue to voluntarily submit BOI reports.
Update (12/9/24):
A federal court is blocking the U.S. Department of Treasury from enforcing the Corporate Transparency Act’s beneficial ownership information reporting requirements.
Under the nationwide preliminary injunction, FinCEN is barred from enforcing BOI filing requirements, and reporting companies do not have to comply with the CTA’s Jan. 1, 2025, deadline pending a further order of the court, according to the Journal of Accountancy.
An alert on the FinCEN website states:
In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
The PCOB team is keeping an eye on this issue and will provide updates as they become available.
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As a pest control business owner, you’ve probably heard about companies being required to report beneficial ownership information (BOI) to the federal government.
It may sound onerous, but luckily BOI reporting is easy and takes approximately 10 minutes to complete.
Here, we’ll cover the basic information you need to check this task off your to-do list.
BOI Background & FAQs
The Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the U.S. to report information about who ultimately owns or controls them to U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Filing is free. Beneficial ownership information reporting is a one-time requirement, unless the filer needs to update or correct information.
When Do I Report BOI?
FinCEN began accepting reports on Jan. 1, 2024.
- If your company was created or registered prior to Jan. 1, 2024, you have until Jan. 1, 2025, to report BOI.
- If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
- If you create or register a company on or after Jan. 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
Do I Have to Report BOI?
Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN.
Your company may need to report information about its beneficial owners if it is:
- A corporation, a limited liability company (LLC), or was otherwise created in the U.S. by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
- A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
Twenty-three types of entities are exempt from beneficial ownership information reporting requirements, including publicly traded companies, nonprofits and some large operating companies.
Use the checklists in FinCEN’s Small Entity Compliance Guide to determine whether your company qualifies for an exemption.
How Do I Report BOI?
Reporting companies report beneficial ownership information online at fincen.gov/boi.
Generally, reporting companies must provide four pieces of information about each beneficial owner:
- Name;
- Date of birth;
- Address; and
- The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport or a non-expired identification document issued by a state (including a U.S. territory or possession), local government or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document also must be submitted.
The company also must submit some information about itself, such as names and address.
What Happens If I Don’t Report BOI?
Failure to report beneficial ownership information to FinCEN or providing false or fraudulent BOI may result in civil penalties of up to $500 per day or criminal penalties, including imprisonment for up to two years and a fine of up to $10,000.
For more information, review FinCEN’s Small Entity Compliance Guide or visit fincen.gov/boi.
The bottom line for PCO Bookkeepers & M&A Specialists clients: Please feel free to reach out to your client manager if you need assistance filing your BOI report. We are here to help you complete this task as smoothly as possible.
For non-clients: We take federal filing requirements like BOI reporting seriously. Please reach out to us to discuss our services and learn about our proactive approach.
