Avoid Penalties Easily: Streamlined BOI Filing with Athennian & FileForms

The Corporate Transparency Act (CTA) is a critical piece of legislation aimed at boosting financial transparency in the US and cracking down on crimes like money laundering, fraud, and terrorism financing. 

As part of CTA, many businesses are now required to submit Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) by Jan 1, 2024. If your company falls under this mandate, it’s crucial to understand the requirements and meet the deadlines to avoid serious penalties.

Consequences of Non-Compliance

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report. Failing to comply with the CTA’s BOI filing requirements can result in severe legal and financial consequences, including:

• Fines: Civil penalties of up to $591 per day for failing to report or for inaccuracies in the reports.
• Criminal penalties: Fines of up to $10,000 and imprisonment for up to two years.
• Increased scrutiny: Non-compliance can attract further investigations from regulatory bodies like FinCEN, potentially leading to costly legal battles.
• Operational disruptions: Businesses could face disruptions due to ongoing investigations or other legal constraints, impacting day-to-day operations.

Given the seriousness of these penalties, it’s critical to ensure your BOI filings are accurate, timely, and compliant with the CTA.

Who Needs to File BOI Reports?

Under the CTA, certain businesses, both domestic and foreign, are required to file BOI reports to FinCEN. The law applies to entities like:

• Corporations
• Limited Liability Companies (LLCs)
• Limited Liability Partnerships (LLPs)
• Other similar entities created by filing documents with state offices.

These businesses must report detailed information about their beneficial owners—those who own or control the company. The information helps law enforcement maintain a transparent financial system and prevent illicit activities.

“FileForms has been a great asset to our organization regarding the BOI reporting requirement that came in force earlier this year. The platform is clean, simple and user-friendly. It walks you through step-by-step” the process of filing a BOI report for each entity. FileForms offered several webinars regarding information on the BOI reporting requirement, as well as the use of their platform. These sessions were very informative and assisted us with knowing what information we needed to report for our entities. I would recommend FileForms to anyone looking for a solution to filing BOI reports.” – Michelle Khedar, Senior Law Clerk, Fengate

Who is exempt?

Not all entities are required to file BOI reports. The CTA provides specific exemptions, including:

• Banks and credit unions
• Companies that report to the Securities and Exchange Commission (SEC)
• Insurance companies and public accounting firms

Additionally, businesses are exempt if they meet all of the following criteria:

• Employ more than 20 full-time employees in the U.S.
• Report over $5 million in gross receipts or sales on their federal tax returns.
• Have a physical presence in the U.S.

Subsidiaries that are wholly owned or controlled by exempt companies are also free from the reporting requirements.

How Athennian’s Integration with FileForms Can Help

Athennian has integrated with FileForms to simplify Ultimate Beneficial Ownership Reporting for its users and make BOI filing fast and hassle-free. 

Athennian users can leverage their accurate data inside the platform to automate BOI filings and submit instantly to FinCEN. Secure, error-free, and time-saving—with instant notifications for data changes to streamline your filing process.

Companies with complex entity structures like private equities, funds, and real estate trusts can save up 200+ hours on BOI reporting by taking advantage of Athennian’s integration with FileForms and their additional set of features. 

Benefits of the Athennian & FileForms integration

• Automated data syncing: The integration allows you to automatically pull ownership data from Athennian into FileForms, eliminating the need for manual data entry and minimizing the risk of errors.
  
  
• Direct reporting to FinCEN: You can electronically file your BOI reports directly with FinCEN through FileForms, ensuring a smooth and efficient submission process.
  
  
• Real-time updates: Any changes in ownership information in Athennian are immediately reflected in FileForms, ensuring your data stays accurate and up to date for reporting purposes.
  
  
• Security and compliance: The integration uses robust security protocols to protect your sensitive data, ensuring compliance with the highest standards while giving you peace of mind.
  
  
• User-Friendly Process: You can manage the entire compliance process through an intuitive interface, allowing you to complete the filing in under 10 minutes and focus on your core business.

Stay Compliant and File Faster

The deadline for BOI filings is fast approaching, and the penalties for non-compliance are too high to ignore. With Athennian and FileForms, you can take the complexity out of the process and ensure your filings are accurate, fast, and compliant.

Get in touch with our team by clicking here to learn how we can help you meet your CTA reporting obligations with ease.