With the new Corporate Transparency Act (CTA) in place, many businesses will need to file Beneficial Ownership Information (BOI) reports for the first time. You probably know this by now! But did you know there are ongoing reporting requirements? Read on to learn what you need to do.

What Happens After the Initial Report?

Once you've filed your initial BOI report, your reporting obligations don't end. You must file updated reports whenever there is a change to your beneficial ownership. These include:

When to File Updated or Corrected Reports

1. Changes in Ownership or Control:
   • If someone new acquires 25% ownership or gains significant control over the business, an update must be filed within 30 days of the change.
2. Correction of Errors:
   • If you realize there was a mistake in the initial filing, you have 30 days to submit a correction.
3. Changes in Information:
   • Any changes to a beneficial owner's name, address, or identification number (like passport or driver's license changes) must also be reported within 30 days.

Why Accurate and Timely Reporting Matters

Staying compliant with BOI reporting requirements is important because:

• Penalties: Failing to file or update reports on time can result in fines of up to $500 per day, and willful non-compliance may lead to criminal penalties.
• Business Transparency: By keeping ownership information current, you help reduce the risk of your company being involved in illegal activities such as money laundering or fraud.

How to Stay On Top of Reporting

To avoid missing any deadlines, consider:

• Automated Services: Some services offer reminders and automated filings, ensuring updates are submitted on time.
• Legal and Tax Professional Support: Regular check-ins with legal or tax advisors can help keep your records up-to-date.

Conclusion

The initial BOI report is just the beginning. Staying compliant means understanding when updates are necessary and acting quickly to file any changes. With these systems in place, businesses can focus on growth while remaining in line with FinCEN’s regulations.

Stay compliant, stay informed, and keep your business moving forward!