Don’t Overpay for FinCEN BOI Filing: Do It Yourself!
As a business owner, you've probably seen the advertisements popping up everywhere—companies offering to handle your Beneficial Ownership Information (BOI) filing with FinCEN for a fee. In some cases, those fees are astronomical, leaving many business owners feeling like they have no choice but to spend hundreds of dollars just to meet a new compliance requirement. But here's the truth: BOI reporting is something most business owners can complete themselves in about 15 minutes, and I'm here to walk you through it.
What is BOI Reporting and Why Does It Matter?
First, let's break down the BOI requirement and why it matters. FinCEN, the Financial Crimes Enforcement Network, is introducing these new reporting rules in an effort to crack down on financial crimes like money laundering and tax evasion. By collecting information on the individuals who truly own and control companies, FinCEN aims to increase transparency in the U.S. financial system.
As of January 1, 2024, most businesses are required to report their beneficial owners—the individuals who own or control at least 25% of the company. If you run a small business, LLC, or corporation, chances are this applies to you. Only a few entities, like publicly traded companies and larger organizations, are exempt.
While this new reporting rule is important, it doesn't have to be complicated or costly. I know from experience that navigating regulatory requirements can feel overwhelming, but the truth is, this particular filing is relatively straightforward. And it's designed to be that way.
Who Needs to File BOI Reports?
Most U.S. companies formed by a state filing, like LLCs, corporations, and limited partnerships, must submit BOI reports. If your company has 20 or fewer employees and less than $5 million in revenue, or if you formed your business with a state or local government, this likely includes you. This rule is especially relevant for small business owners, as FinCEN focuses on increasing transparency within smaller, privately held companies.
Exemptions exist for larger companies and certain regulated entities, like banks and insurance companies. Still, for the vast majority of small business owners, this is a requirement you'll need to meet.
What Information Will You Need?
When you're ready to file, FinCEN requires some basic information about your business's beneficial owners. You'll need to provide:
The full legal name of each owner.
Date of birth.
A current residential or business street address.
A government-issued ID number (such as a driver's license, passport, or other form of identification).
If that sounds simple, that's because it is. The information is minimal, and most business owners will already have it readily available. There's no need to pay a company hundreds of dollars to do this for you—it's just a matter of filling out a short online form.
Why the High Costs?
So why are so many companies offering to file BOI reports for a fee, and why are those fees so high? Unfortunately, many businesses see this new requirement as an opportunity to charge for a service that's quick and easy to complete. They take advantage of the fact that many business owners are unfamiliar with the requirement, creating a sense of urgency or confusion to justify their steep prices.
I've seen companies advertising BOI filing services for $75 to $500. That's a lot of money for a process you can manage in about 15 minutes. While outsourcing tasks can be an excellent option for complex compliance matters, in this case, you likely won't need to pay someone to handle it for you.
The Consequences of Not Filing
Now, I understand that compliance can be stressful. It's easy to feel like there's always another deadline or form lurking around the corner, and hiring someone to deal with it can be tempting. But let me assure you, the BOI filing is one area where you don't need to outsource.
That said, it's crucial to meet the deadlines to avoid penalties. Businesses that fail to submit their BOI reports on time can face fines of up to $500 per day, and willful violations could result in even more severe consequences, including criminal charges. But as long as you know the requirements and prepare accordingly, there's no reason to panic.
How to File Your BOI Report
So how do you get started? FinCEN has created an online portal where business owners can submit their BOI information. Once you gather the necessary details about your beneficial owners, the process is as simple as:
Visit the FinCEN Reporting Portal: FinCEN's website will have a dedicated section for BOI reporting: https://boiefiling.fincen.gov/
Enter the Required Information: Input your business details and the information about each beneficial owner.
Submit the Form: Once you've filled in the information, simply submit it through the portal. You'll receive a confirmation once your report has been accepted.
That's it—no hidden fees, no complex documentation. The process is designed to be accessible for small businesses and only requires a few minutes of your time.
We're Here to Help—For Free
While the process is simple, I understand that some business owners might still feel unsure about submitting their BOI reports. If you need any assistance or have questions, my team and I are here to help you—completely free of charge. We believe in empowering small business owners with the knowledge and support they need without unnecessary costs.
If you're worried about getting it done right or want someone to walk you through the process, contact us. We'll guide you through every step, ensuring you're compliant and saving you from those high service fees.
You don't need to spend hundreds of dollars on something you can handle yourself; we're here to ensure that's the case. Feel free to contact us with any questions or for personalized assistance—at no cost.