Corporate Transparency Act Penalties (BOI Penalties)

The Corporate Transparency Act (CTA) and BOI Reporting requirements started on 1st January 2024. With this, every corporation and LLC has to file its BOI report. Otherwise, companies will have to pay a fine of $500 or 2 years in prison. BOI reporting is compulsory for all companies, until and unless your corporation is exempt from the law. And you also need to make sure that you’re filing it correctly, else you still may have to face BOI penalties.

Who is Affected by BOI Penalties?

Any business that is required to file a BOI report but fails to do so is at risk of facing penalties. This includes most LLCs, corporations, and partnerships, whether based in the U.S. or operating here as foreign entities. However, certain entities, such as publicly traded companies, are exempt from this requirement. BOI Penalties apply to businesses that:

• Miss the filing deadline
• Submit false or misleading information
• Fail to update their BOI report within 30 days when there are changes in ownership

If you’re unsure if you’ve to file your BOI report or not, you can use our tool to check quickly and easily. Link: Do I need to file a BOIR Report?

Consequences of not filing BOI Report

Failing to comply with the Corporate Transparency Act (CTA) and stay on top of your BOI reporting requirements can have serious consequences. There are two main violations that could result in penalties: Failure to submit or update the BOI report: Penalties may apply if you don’t file or update your BOI report when changes occur. Providing false or misleading information: This includes submitting fake documents, inaccurate details, or fraudulent photos. Here are the BOI penalties you could face:

Type of Penalty	What You Could Face
Civil	$591 per day for each day the violation continues (adjusted annually for inflation).
Criminal	A fine of up to $10,000, up to 2 years in prison, or both.

Penalties for Misuse of BOI

It’s not just about failing to file or submitting inaccurate information. Unauthorised use or leaking of BOI information also comes with serious consequences. If you misuse BOI information, here’s what you could face:

Type of Penalty	What You Could Face
Civil	Same as above: $591 per day, adjusted for inflation.
Criminal	A fine of up to $250,000, and up to 5 years in prison, or both.

These penalties are serious, so it’s crucial to ensure your BOI report is filed accurately and on time. If your business was registered before January 1, 2024, you must submit your BOI report by January 1, 2025. For newer companies, you have 90 days to file after registration. Staying compliant not only helps you avoid legal trouble but also keeps your business running smoothly. Visit our BOIR Filing page to get started and ensure your business stays penalty-free.

Conclusion

To avoid significant penalties and legal trouble, filing your BOI report correctly and on time is essential. Our BOI Reporting tool simplifies the process, helping you file easily and accurately. If you need additional support, consider working with a CPA or attorney to ensure compliance. Don’t delay—ensure your business is compliant with the Corporate Transparency Act and avoid unnecessary risks.