If you’ve been hearing about Beneficial Ownership Information (BOI) reporting, especially as a business owner, you might be wondering what it’s all about and whether it applies to you. Let’s break down exactly what BOI is, who needs to file, and what it means for different types of businesses and nonprofits. We’ll also explain how Profitwise Accounting (PWA) can help take this responsibility off your hands.
BOI stands for Beneficial Ownership Information, a requirement for certain businesses to report details about individuals who own, control, or benefit financially from the company. The purpose is to promote transparency and prevent illegal activities like money laundering and tax evasion.
If your business falls under the BOI filing requirements, not complying could lead to civil fines, criminal penalties, or even prison time. In short, ignoring BOI obligations can create unnecessary problems for your business—something every business owner wants to avoid.
If you own a business, you’re likely required to file BOI, even if you are the only owner.
Companies required to report are called Reporting Companies. There are two types of reporting companies:
you control the company, and directly benefit from its profits, making you subject to these requirements.
In cases where you've registered your Sole Prop with the SOS you would have to report. Otherwise, no, sole proprietorships do not meet the criteria for a reporting company.
This is a common question: “Does my nonprofit need to file BOI?”
In most cases, nonprofits are exempt from BOI filing requirements. Nonprofits typically don’t have individuals who financially benefit in the same way as for-profit businesses. However, if your nonprofit has a more complex structure or engages in for-profit activities, it’s worth double-checking to ensure compliance.
Beneficial Owners. This can be straight forward, but can also be a bit gray.
A Beneficial Owner is defined as an individual who either directly or indirectly:
Filing BOI doesn’t have to be complicated. Here’s a simple approach:
Just don't do this.
Be sure to report on time, report correctly, and update in a timely manner. Failing to do so can result in:
We get it—filing & maintaining BOI can feel like another burden. That’s where Profitwise Accounting comes in. We offer BOI filing services to take the stress off your plate. Here’s how we can help:
Understanding BOI requirements is essential if your business is subject to them. From single-member LLCs to nonprofits, knowing how and when to file can save you from costly fines and legal headaches. With PWA's expertise, you don’t have to navigate this alone.
If you’re ready to streamline your BOI reporting and ensure you stay compliant, contact Profitwise Accounting today. Let us handle the paperwork so you can focus on growing your business.