Corporate Transparency Act Penalties (BOI Penalties)

The Corporate Transparency Act (CTA) and BOI Reporting requirements started on January 1, 2024. Every corporation and LLC must file its BOI report to avoid penalties. If the company fails to comply, it may face fines of $591 per day or up to 2 years in prison.

BOI reporting is mandatory for most companies until and unless your corporation is exempt from BOIR filing. You also need to make sure that you’re filing it correctly; otherwise, you may still have to face BOI penalties.

Who is Affected by BOI Penalties?

Any business required to file a BOI report but fails to do so is at risk of facing CTA penalties. This includes most LLCs, corporations, and partnerships, whether based in the United States or operating in the U.S. 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 of 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. These are as,

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.

CTA Penalties you could face:

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.

These penalties are serious, so ensuring your BOI report is filed accurately and on time is crucial. 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 helps you avoid legal trouble and keeps your business running smoothly. Visit our BOIR Filing page to start and ensure your business stays penalty-free.

Check out our step-by-step guide to file your BOI Report in just 5 minutes using ComplyCTA. 

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 complies with the Corporate Transparency Act and avoid costly penalties.