The end of the year can feel like a triathlon to Solo PR Pros. With a list longer than Santa Clause, you have an overwhelming amount of client and administrative tasks to complete before the ball drops on December 31. With proposals to finalize, contracts to renew, campaigns to wrap up and year-end reports to prepare, we often shove some things to the never ending “later’ pile. However this year,  there is one task that needs to move to the top of the list – the Beneficial Ownership Information (BOI) filing mandated by the Corporate Transparency Act. 

If you started your business before January 1, 2024 the deadline to file is January 1, 2025, so check it off now before you pop the confetti to celebrate the new year. If you started your business on or after January 1, 2024, you must file 90 days from the formation or registration of your business. If you are planning on starting your business on or after January 1, 2025 note that you will be required to file  within 30 days. As highlighted in a recent episode of “That Solo Life” podcast, failing to comply with this filing requirement can lead to hefty fines.

The Corporate Transparency Act was enacted to enhance transparency in business ownership and combat illicit activities such as money laundering and tax evasion. Under this act, small businesses are required to file BOI paperwork with the Financial Crimes Enforcement Network (FinCEN), disclosing information about their owners and beneficial stakeholders. This process, while seemingly burdensome, is designed to create a safer business environment and ensure that the government has accurate records of who is behind the businesses operating within its jurisdiction.

Despite the significance of this filing, many small business owners remain unaware of its existence. The government has not effectively communicated the importance of the BOI filing to the vast number of small business owners across the country. Consequently, many are learning about this requirement only as the deadline approaches. This lack of awareness can lead to unnecessary stress and financial penalties, which can be particularly damaging for solo entrepreneurs who often operate on tight budgets.

Fortunately, the process of filing the BOI paperwork is straightforward and can be completed in a matter of minutes. The online application is easy to complete on your own and requires basic information such as the business name, address, ownership details, and possibly the Employer Identification Number (EIN). The entire process takes less than 10 minutes.

In addition to the immediate responsibility of filing the BOI paperwork, small business owners should also be aware of the broader implications of compliance. Adhering to regulatory requirements not only helps avoid fines but also builds credibility and trust with clients and partners. In an industry where reputation is paramount, demonstrating compliance can enhance a business’s standing and foster stronger relationships.

Running a small business has a lot of moving parts, but we have you covered! Take the steps now to comply with this new requirement and avoid any unnecessary fines.

Don’t miss Episode 277 of That Solo Life where we discuss 5 things (including BOI) to check off your 2024 list!

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