Timely Reporting: Your Obligation to Update Beneficial Ownership Information

Once a company submits its initial FinCEN Beneficial Ownership Information (BOI) report, the responsibility doesn’t end there. In fact, companies are required to report any updates to their BOI report within 30 days of the change – even if it occurs before the end of 2024 (the initial reporting deadline for pre-2024 entities).

Failing to update your BOI within the specified timeframe can lead to significant penalties! Staying on top of these updates is not just about compliance—it’s about protecting your business from potential legal and financial consequences.

What Changes Require You to Update Beneficial Ownership Information?

What changes require you to update beneficial ownership information? Here’s a quick summary of the key items that require an update:

1. Changes in Beneficial Ownership: If a new beneficial owner or a previous beneficial owner no longer holds ownership interest or substantial control, you must update this information promptly.
2. Changes in Beneficial Owner Information: If a current beneficial owner moves to a new residential address or is issued a new Driver’s License containing a new ID number, this information must be reported.
3. Changes in Entity Information: Registering a new DBA name or moving to a new principal address needs to be reported.
4. Corrections: Any errors in previously filed BOI reports should be corrected within 30 days of noticing the inaccurate information.

Does the 30-Day Window Matter?

The 30-day window for reporting updates and corrections is strict. Whether you need to update beneficial ownership information or correct a mistake, timely reporting is essential to maintaining compliance. Ignoring this obligation could expose your business to penalties, including fines that compound the longer you delay.

Stay Ahead of Compliance

Maintaining an updated BOI report is a continuous process. As business circumstances evolve, so too must your compliance efforts. Staying informed and proactive in updating your BOI ensures that your company remains in good standing with FinCEN’s requirements.

Don’t wait until the deadline approaches—act promptly to update your BOI and avoid the pitfalls of non-compliance.