As the January 1, 2025 deadline approaches for entities formed before January 1, 2024, to submit their Beneficial Ownership Information (BOI) reports, it is crucial to act promptly to avoid unnecessary penalties.
What Penalties Apply for Violating BOI Reporting Requirements?
Anyone who willfully violates BOI reporting requirements may face civil penalties of up to $500 per day for each day the violation continues. This amount is adjusted annually for inflation, and as of this publication, it stands at $591 per day. In addition, criminal penalties may include up to two years of imprisonment and a fine of up to $10,000.

Violations include:
• Willfully failing to file a BOI report,
• Willfully providing false information in a BOI report, or
• Willfully failing to correct or update previously reported information.
Corporate Transparency Act and BOI: A Quick Overview
As discussed in El Trailero Magazine´s February 2024 issue, the Corporate Transparency Act is a cornerstone of anti-money laundering legislation. It represents a significant shift in corporate transparency requirements in the U.S., aiming to create a comprehensive database of beneficial ownership information accessible to law enforcement agencies and financial institutions. This initiative is designed to prevent the misuse of corporate structures for illicit purposes, including money laundering, terrorism financing, and tax evasion.
Reporting Requirements for Short-Lived Entities
A critical update from the latest FinCEN FAQs clarifies requirements for entities that dissolve shortly after formation or registration.
Does a company need to file a report if it ceases operations before the filing deadline?
The updated guidance is clear: regardless of how quickly a company dissolves, it must meet BOI reporting obligations.
• Entities established in 2024 must file a report within 90 days of receiving notice of creation or registration.
• Entities established in 2025 or later must file within 30 days.
If a company files its initial BOI report and dissolves before the deadline, no further reporting is required.
Historical Beneficial Ownership Information
Initial BOI reports generally reflect beneficial owners as of the filing date. However, there is an exception for companies that:
1. Were created or registered in 2024 or later,
2. Ceased operations before the reporting deadline, and
3. File their report after dissolution.
In such cases, the report must accurately reflect beneficial ownership information prior to the company´s dissolution.
With strict penalties and detailed requirements, compliance with BOI reporting is essential for avoiding costly fines and legal issues. Entities should prioritize timely filing and ensure the accuracy of their information to meet these obligations.