New BOI Rules: Stay Ahead, Stay Legal, and Keep More of Your Money

Everything Entrepreneurs Need to Know About Beneficial Ownership Information (BOI) Reporting—Deadlines, Compliance, and Strategies to Protect Your Wealth

Feb 26, 2025

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Hello, Dear Friends!

You may have heard of the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA) if you're a U.S. entrepreneur or business owner. What started as a well-intentioned way to curb financial crimes has evolved into a sweeping set of obligations—and potential opportunities—for everyday business owners.

Below, you’ll find the latest information on BOI reporting, why it matters (especially for tax and financial planning), and how to navigate the new requirements without losing sight of your long-term business goals. Let’s dive into the details so you can feel confident—and stay ahead of looming deadlines.

1. What’s New and What’s at Stake

Extended Deadline—But Don’t Get Complacent

March 21, 2025 is the universal compliance deadline for most existing entities formed before January 1, 2024.
Entities formed on or after January 1, 2025, must submit their BOI within 30 days of their confirmation of formation.

This might sound like plenty of time, but the filings can be more involved than they appear—especially if your ownership structure is more complex than a single-member LLC. Late or inaccurate filings risk severe financial and criminal penalties.

BOI Fundamentals

Who Must File: Almost all corporations, LLCs, limited partnerships, and other state-filed entities unless they qualify for a specific exemption.
What’s Disclosed: Name and identifying info (date of birth, address, ID number, etc.) for each beneficial owner (≥25% ownership or substantial control) and sometimes for the “company applicant” (the person who filed paperwork to form or register the entity).
Why It Exists: The government wants a clear record of who owns and controls U.S. entities to help combat money laundering, fraud, and terrorism financing.

2. Penalties and Practical Consequences

Crippling Financial Fines

Up to $500/day in civil penalties—adjusted annually for inflation (currently around $591/day).
Criminal fines can reach $10,000, and in worst-case scenarios, non-compliance can carry up to two years in prison for willful violations.