BOI Reporting Under the Corporate Transparency Act

The Corporate Transparency Act (CTA) was enacted in 2021 to prevent criminal misuse of anonymous companies for money laundering and illegal financing. It requires businesses to file a Beneficial Ownership Information (BOI) report with FinCEN, identifying individuals who own equity or exercise significant control over a company.

Most small and medium-sized businesses must file if they operate as LLCs, corporations, or S corporations with less than $5 million in annual revenue and fewer than 20 full-time employees. Exemptions apply to heavily regulated sectors, sole proprietorships, general partnerships, nonprofits, and publicly traded companies.

Non-compliance carries steep penalties: "$591 (increased from $500 for inflation) per day" of non-compliance, plus potential criminal charges including jail time. Business owners must also file updates within 30 days of any information changes, such as address updates or expired identification documents.

Working with specialized service providers ensures accurate and timely filing. Note that about one-third of affected small businesses incorrectly believed they were exempt from filing requirements — don't assume you're not required to file without verifying your status.