In 2025, knowing how to file BOI report is critical for millions of small business owners. Specifically, those operating as specifically those operating as Limited Liability Companies (LLCs), are facing a new federal reporting requirement: the Beneficial Ownership Information (BOI) Report. Mandated by the Corporate Transparency Act (CTA), this report is designed to combat money laundering and tax evasion by providing the Financial Crimes Enforcement Network (FinCEN) with details about who truly owns and controls a company.
Failure to file can result in severe civil penalties of up to $500 per day and even criminal charges. If you own an LLC, it is critical to understand your obligations and file on time. This guide breaks down exactly what you need to know.
Who Must File a BOI Report?
Most small entities, including LLCs, corporations, and other entities created by filing a document with a secretary of state or similar office, are required to file. These are classified as "Reporting Companies."
Exemptions
While the scope is broad, there are 23 specific exemptions. Common exemptions include:
- Large Operating Companies: Entities with more than 20 full-time employees in the U.S., a physical office in the U.S., and over $5 million in gross receipts or sales.
- Tax-Exempt Entities: Nonprofits with 501(c)(3) status.
- Inactive Entities: Certain inactive entities that existed before January 1, 2020.
Most single-member LLCs and small partnerships do not qualify for these exemptions and must file.
When is the Deadline?
The deadline depends on when your company was created:
- Existing Companies (Created before Jan 1, 2024): You had until January 1, 2025, to file your initial report. If you missed this, file immediately!
- New Companies (Created in 2024): You have 90 days from the date of registration notice.
- New Companies (Created on or after Jan 1, 2025): You have 30 days from the date of registration notice.
What Information is Required?
You will need to report details for both the Reporting Company and its Beneficial Owners.
1. Reporting Company Information
- Full legal name and any trade names (DBA).
- Business address (cannot be a P.O. Box).
- Jurisdiction of formation (State).
- Taxpayer Identification Number (TIN/EIN).
2. Beneficial Owner Information
A beneficial owner is any individual who either exercises substantial control over the company OR owns/controls at least 25% of the ownership interests.
- Full legal name.
- Date of birth.
- Residential address.
- A unique identifying number from a non-expired ID (e.g., U.S. passport, state driver's license) and an image of that ID.
How to File
The report must be filed electronically through FinCEN’s BOI E-Filing System. There is no fee to file the report directly with FinCEN.
However, the filing can be complex, especially determining "substantial control" or navigating ownership percentages in multi-member structures. Many business owners choose to work with a professional to ensure accuracy.
Need Help?
Don't let this new requirement catch you off guard. At Taxracy, we help business owners stay compliant with all federal regulations, including BOI reporting.
Contact us today to schedule a consultation and ensure your LLC is protected from penalties.