You Need to File BOI Even If Company Closed Before 2024

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New updates have come from FinCEN about filing Beneficial Ownership Information for businesses that closed before 2024. Previous BOI regulations stressed that reporting businesses who have not operated in 2024 were not bound by the reporting requirement; however, now there is clarification on what that really means.

In order for a company to be considered fully closed, you must check off these steps:

“Filing dissolution paperwork with [your business’s] jurisdiction of creation or registration,
Receiving written confirmation of dissolution,
Paying related taxes or fees,
Ceasing to conduct any business, and
Winding up [the business’s] affairs”

If any of these were not completed before the turn of 2024, then you will need to file a BOI report with FinCEN by the deadline of January 1st, 2025. This deadline applies to businesses who were in operation before January 1st, 2024. Even if you did not conduct any business operations in 2024, since your company was still technically a legal entity this year, FinCEN requires beneficial ownership information.

The filing requirement also applies to businesses who were registered and closed within 2024. Typically, a company created in 2024 has 90 days from the registration date to file BOI. Even if yours was officially dissolved within those 90 days, you will still need to file a report with FinCEN. In cases where your business failed but was not formally dissolved, beneficial ownership information will still be required, as the company is still a legal entity until its permanent dissolution.

Penalties for violating your respective deadline are severe. For each day that you fail to file your BOI report with FinCEN, you will incur a $591 penalty. That means that after just 2 days of not filing your report, you will already have over $1,000 in penalties to pay.

Hearing about the nearly $600/day penalty might make you nervous, but there is no need to be! XQ CPA can assist you with filing your BOI report. We’ll take the burden off your shoulders, allowing you to get back to running your business. Get started by booking a consultation with our BOI experts today.

Phone: 832-295-3353

Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php

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Sources:

https://bradfordtaxinstitute.com/Content/BOI-Latest-Updates-for-Dissolved-and-Disregarded-Entities.aspx