As we approach 2025, it’s important for businesses to stay on top of compliance with beneficial ownership information (BOI) reporting requirements established by the Corporate Transparency Act. These regulations, introduced by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), took effect earlier this year and are crucial for enhancing transparency and combatting financial fraud.
Who Needs to Report?
The BOI reporting mandate applies to specific business entities, including:
- Corporations
- Limited liability companies (LLCs)
- Entities created in the U.S. by filing with a secretary of state or similar office
- Foreign companies registered to do business in the U.S.
Are there Exemptions?
Yes—23 types of entities are exempt from BOI reporting, including publicly traded companies, nonprofits, and certain large operating companies. Understanding whether your business qualifies for an exemption is essential to ensuring compliance.
Filing Timeline for New Entities
Businesses created or registered in 2025 will have 90 calendar days from the effective date of creation or registration to file their initial BOI reports. Staying ahead of this timeline is crucial to avoid penalties.
Resources to Simplify the Process
Navigating BOI reporting doesn’t have to be overwhelming. FinCEN offers a detailed brochure that provides an overview of the requirements and a step-by-step guide to submitting your information:
Why This Matters
Reporting BOI fosters a more transparent and accountable business environment, aligning with efforts to prevent financial crimes. Make sure your business is compliant and protected.
We’re Here to Help
At Pinnacle Bank, we’re committed to informing our customers about important regulatory updates. If you have questions about BOI reporting or other compliance requirements, email us at customerservice@pinnaclebank.com, call 877.759.7939, or visit your nearest Pinnacle branch.
Let us guide you through these changes so your business can thrive.