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Navigating BOI Reporting Requirements for Private Companies

08/26/2025

If you own a privately held company, there’s a new compliance requirement that should be on your radar: Beneficial Ownership Information (BOI) reporting. Under the Corporate Transparency Act (CTA), many businesses are now required to disclose information about their owners to the Financial Crimes Enforcement Network (FinCEN). This is a big shift aimed at preventing financial crimes like money laundering and fraud—but it also means an added layer of regulatory responsibility for business owners.

So, what exactly do you need to know? Let’s break it down in plain English.

Who Needs to Report BOI?

Not every business is required to file a BOI report, but many small and privately owned companies will fall under this rule. If your company is a corporation, LLC, or other entity registered with a U.S. state or tribal authority, there’s a good chance you must comply.

However, there are exemptions. Large operating companies, regulated businesses (like banks or insurance companies), and certain inactive entities may be off the hook. The specifics can get a little tricky, so it’s best to check whether your company qualifies for an exemption.

What Information Must Be Reported?

If your business is required to report, you’ll need to submit details about both the company and its beneficial owners. This includes:

  • Company Information: Legal name, trade names (if any), address, jurisdiction of formation, and taxpayer identification number.
  • Beneficial Owner Information: Full legal name, date of birth, current address, and an identification number from a government-issued document (like a passport or driver’s license).

A beneficial owner is generally anyone who owns 25% or more of the company or has significant control over decision-making.

When and How to File?

  • Existing Companies (formed before Jan 1, 2024): You have until January 1, 2025, to submit your initial BOI report.
  • New Companies (formed after Jan 1, 2024): You must file within 90 days of formation (this shortens to 30 days in 2025).
  • Updates & Corrections: If ownership details change, you have 30 days to update the filing.

Reports must be submitted electronically through FinCEN’s BOI E-Filing System. No filing fee applies (for now), but failure to comply can result in hefty penalties.

What Happens If You Don’t Comply?

Ignoring BOI reporting isn’t a small oversight—it can lead to civil penalties of $500 per day for noncompliance and criminal penalties of up to $10,000 and two years in prison for willful violations. That’s not a risk most business owners want to take.

How Can Businesses Prepare?

  1. Determine if you need to report – Check whether your company falls under the new rules or qualifies for an exemption.
  2. Gather required information – Identify all beneficial owners and collect the necessary details ahead of time.
  3. Stay on top of deadlines – Mark important filing dates on your calendar and set reminders.
  4. Work with a trusted advisor – Given the complexity, it’s wise to consult with your accountant or legal counsel to ensure compliance.

At Perpetual CPA LLP, we help businesses like yours stay on top of evolving regulations. If you need guidance on BOI reporting, reach out to us today at www.perpetualcpa.com.

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