Understanding the BOI Filing: What Small Business Owners Need to Know

At Academy Bank, we’re dedicated to supporting small business owners like you with straightforward, helpful information. If you’ve heard about the Beneficial Ownership Information (BOI) filing requirement from FinCEN but aren’t sure what it means for your business, you’re not alone. This new regulation, effective January 1, 2024, is an important update designed to promote transparency and fight financial crime. Here’s what you need to know.

What Is the BOI Filing?

The BOI filing is a federal requirement introduced by the Financial Crimes Enforcement Network (FinCEN). It requires certain small businesses to report information about individuals who own or control the company. This information is stored in a secure database and helps prevent activities like money laundering, fraud, and tax evasion.

What Businesses Need to File?

If your business is a corporation, limited liability company (LLC), or similar entity registered in the U.S., you’ll likely need to file. However, there are exceptions, including:

• Larger companies with over 20 full-time employees and $5 million in annual revenue.
• Companies already heavily regulated, like banks and publicly traded firms.
• Not sure if your business qualifies? Reach out to us or visit the FinCEN website for detailed criteria.

What Information Do You Need to Provide?

You’ll need to disclose details about your business and its “beneficial owners”—those who:

• Own 25% or more of the business, OR…
• Exercise significant control over the company.

Required information includes:

• Legal name, address, and date of birth of the beneficial owner(s).
• Identification (like a driver’s license or passport).
• When and How to File

The filing deadline depends on when your business was registered:

• Existing businesses (registered before January 1, 2024): File by January 1, 2025.
• New businesses (registered on or after January 1, 2024): File within 30 days of registration.
• You can submit your BOI report through FinCEN’s secure online portal.

Why BOI Filing Matters:

The BOI filing is more than a regulatory step—it’s part of a broader effort to create a transparent, trustworthy business environment. By complying, you’re helping protect your business and our economy from fraud and other financial crimes.

How We Can Help as Your Trusted Business Bank:

At Academy Bank, we understand that new requirements can feel overwhelming. That’s why we’re here to help:

• Answering your questions about BOI filings.
• Guiding you to trusted resources.
• Offering financial tools to keep your business running smoothly.

Feel free to stop by your local branch or give our business bankers a call—as a locally and family-owned bank, we understand small business and are happy to support your success.

 

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