Stay Compliant with BOI Filing Requirements
Understand what’s required and file on time to avoid penalties
Staff Writer
Arorix Editorial Team
Updated: June 14, 2025, 5:29pm
As of January 1, 2024, most small businesses in the U.S. are required to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN). This new federal mandate was introduced under the Corporate Transparency Act (CTA) to increase business transparency and reduce financial crimes.
Failing to file BOI on time can result in serious penalties—even for small businesses.
What Is BOI?
BOI (Beneficial Ownership Information) is a federal reporting requirement that discloses who owns or controls a business. A beneficial owner is anyone who:
Owns 25% or more of the company, or
Exerts substantial control (e.g., CEO, managing member, senior officer)
BOI is submitted directly to FinCEN, a bureau of the U.S. Department of the Treasury.
Who must file
Most U.S. businesses formed or registered with a state agency—including single-person operations—must file a BOI report.
You must file if you are:
An LLC
A Corporation (C-Corp or S-Corp)
A Limited Partnership
A Sole Proprietorship registered with the state (e.g., with a DBA)
You are exempt if you are:
A large operating company with 20+ full-time employees, $5M+ in U.S. revenue, and a physical office in the U.S.
Certain entities already heavily regulated (e.g., banks, credit unions, insurance companies)
Sole proprietors not registered with the state
What Information Is Required?
The best payment gateway depends on your business model:
Retail Stores: Need integrated POS and quick chip/tap payments.
Online Shops: Need easy checkout, cart integration, and fraud tools.
High-Risk Industries: Need specialized support and flexible risk management.
Other factors to consider include the flexibility to customize checkout fields, the ability to tokenize customer data for repeat billing, and support for alternative payment methods like Apple Pay, Google Pay, and crypto payments.
For online businesses, PaymentCloud provides advanced gateway tools with strong high-risk support.
For mobile service businesses, Square offers fast and easy mobile checkout options.
Always check if the gateway fits your platform (Shopify, WooCommerce, Magento) and supports your preferred merchant services provider. Make sure it also offers reliable APIs if you plan to build custom checkout experiences.
Why Using a Trusted Payment Gateway Matters
You’ll need to report the following:
Company Information
- Legal business name
- DBA/trade names (if any)
- Business address
- State of formation
- EIN (Employer Identification Number)
Beneficial Owner Information
For each owner or controller:
- Full legal name
- Date of birth
- Current residential address
- A valid government-issued photo ID (e.g., driver’s license or passport)
When Is the Deadline to File?
- Formed before January 1, 2024: File BOI report by January 1, 2025
- Formed after January 1, 2024: File within 90 days of business formation
- Changes to BOI information: File updates within 30 days of any change
Penalties for Noncompliance
- Up to $500 per day for late filings
- Fines up to $10,000 and/or
- Up to 2 years in prison for willful violations
How to File Your BOI Report
- File directly at FinCEN’s portal (https://www.fincen.gov/boi)
- Filing is free, but must be 100% accurate
- Use a professional service for:
- Owner verification
- Secure filing and storage
- Reminders for updates or changes
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Stay Compliant with Federal BOI Rules – Simple, Secure Beneficial Ownership Filing
Do sole proprietors need to file BOI?
Only if they’re registered with the state (e.g., filed a DBA or other formal registration).
Can I file the BOI report myself?
Yes. Filing is free through FinCEN’s online portal, but accuracy is critical. Many business owners use a service to avoid mistakes.
Does BOI filing replace my state filings?
No. BOI is a federal requirement. You must still meet your state’s registration, reporting, and renewal obligations.
Do I need to refile every year?
No. But you must file an update within 30 days if ownership, control, or business information changes.
What happens if I miss the filing deadline?
You could face civil fines of up to $500 per day and potential criminal penalties, including up to 2 years in prison.