The Importance of Submitting Your BOI Report: A Call to Action for Chamber Members
In light of the Corporate Transparency Act, small and mid-sized businesses are now required to submit Beneficial Ownership Information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). This new federal mandate is designed to curb illicit activities by increasing transparency around business ownership. Chamber members should take note of the filing requirements, as the deadline for many businesses is fast approaching.
Understanding the BOI Requirements
The BOI reporting rule applies to a wide range of businesses, including corporations, LLCs, and other entities registered in Illinois with fewer than 20 employees and less than $5 million in gross revenue. Beneficial owners are defined as individuals owning at least 25% of a business or those with substantial control, such as senior officers or key decision-makers.
Exemptions exist for publicly traded companies, certain large operating entities, and nonprofit organizations, among others. Chamber members unsure of their status are encouraged to review the exemption list provided by FinCEN.
Deadlines and Filing Procedures
For businesses registered before January 1, 2024, the filing deadline is January 1, 2025. Those registering after this date must submit their reports within a set timeframe—90 days for entities registered before 2025 and 30 days for those afterward. Reports must be filed electronically on FinCEN’s platform, which issues confirmations upon successful submission.
Why Compliance Matters
Failing to file a BOI report can result in significant penalties, including fines of up to $500 per day and possible imprisonment for deliberate non-compliance. These measures underscore the seriousness of the reporting requirement.
Moreover, the information is securely held and accessible only for specific purposes, such as law enforcement and regulatory compliance. Businesses should take advantage of this opportunity to demonstrate good governance while contributing to broader efforts to combat financial crimes.
Support for Businesses
To ease the transition, the Illinois Secretary of State and the Department of Commerce and Economic Opportunity (DCEO) offer free training and support through Small Business Development Centers (SBDCs). Chamber members are encouraged to utilize these resources to ensure timely and accurate filings.
Beware of Scams
Unfortunately, scammers have targeted businesses with fraudulent requests related to the BOI filing process. Members should remember that FinCEN does not send unsolicited requests, and filing is free. Any suspicious communications should be reported to authorities such as the Better Business Bureau or the FBI.
Take Action Now
As the end of the year approaches, now is the time for Chamber members to act. Filing your BOI report is not just a legal obligation—it’s a proactive step toward maintaining a reputable and compliant business. Don’t wait until the deadline looms closer; leverage available resources, ensure your filing is complete, and avoid unnecessary penalties.
For further information, visit FinCEN’s website or contact your local SBDC.
