We’ve arrived at the final article in our series on BOI reporting requirements. Now, you’re familiar with how to file a BOI report, who has to file, the information you need to supply, and much more. But what if you discover a mistake in your previously filed report or a change in circumstances necessitates an update to your BOI report? What’s next? Today, we’ll guide you on how to update or change a BOI report to ensure your business remains compliant.
How to Update or Change a BOI Report
Throughout this series, we’ve navigated the essentials of the Beneficial Ownership Information (BOI) report—from understanding its importance for small businesses, recognizing applicable company types, and identifying beneficial owners to the actual filing process.
Now, it’s time to look at how companies can amend these reports to reflect current and accurate information.
Making Updates to the BOI Report
After submitting your initial BOI report, you might need to file an updated report for certain post-submission events. In general, if any details pertaining to your company or its beneficial owners change, you’re expected to submit an updated report within 30 days of the change occurring.
For instance, consider situations such as a change in company name, ownership, or contact information. Another example is if there’s a new beneficial owner due to various reasons like alterations in ownership stakes or even the passing of a previous owner. When such a change happens, the digital landscape you comfortably navigated for your initial report awaits your return to file updates.
One notable caveat is the special rule related to minor children being beneficial owners. In this case, an update is required once they reach the age of majority.
Update a BOI Report with Inaccurate Information
Discovering inaccuracies in your BOI report need not scare you, provided you act within the designated time frame. A grace period of 30 days from when an inaccuracy is identified—or reasonably should have been identified—allows your company to make corrections without penalties, as long as the corrections are made within 90 calendar days of the original filing.
Whether the errors are minor, like typo-driven inaccuracies, or more significant mistakes that impact the reported information’s integrity, timely corrections are a legal obligation. Not to mention, they also serve to maintain the legitimacy and trustworthiness of your enterprise.
Legal Implications of Non-Compliance
The updates and corrections are not purely procedural; failure to adhere to these requirements has tangible legal repercussions. Ignoring the obligation to update or change a BOI report could lead to substantial fines, legal action, and other punitive measures, reflecting the severity with which regulatory authorities view these obligations.
Beyond financial penalties, such slips can sully your company’s reputation and impede its ability to engage with federal contracts or assistance programs, with the added risk of intensified future regulatory scrutiny. Notably, both individuals and corporate entities can be held liable for violating BOI reporting requirements.
FinCEN outlines some of the penalties for non-compliance as such:
“As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.”
Filing an Updated BOI Report for Exempt Companies
Another scenario requiring attention is when a company that filed a report later becomes exempt from the reporting requirements. You should update your BOI report indicating the company’s new status in such cases. This may be the most straightforward update you’ll file, requiring confirmation of the company’s identity and the selection of the exemption status box.
Filing this update reaffirms your proactive stance on compliance. It also seals the narrative of your company’s reporting cycle with the acknowledgment of your newfound exemption status.
Concluding Our BOI Reporting Series
This series has endeavored to make the winding path to BOI compliance more navigable. The principles of due diligence and meticulous record-keeping we’ve expounded on do not conclude with the initial report submission. Rather, they extend throughout your company’s life cycle of growth and evolution.
Updating and correcting your BOI report is the final step in this process. This is a step that ensures integrity in reporting, fosters transparency, and solidifies your company’s standing in a world where financial accountability is paramount.
Trust Contiguglia Law in Denver if you want assistance with this process. Our business attorneys are knowledgeable in the nuances of BOI reporting and other business law intricacies. They can offer guidance to ensure your company’s BOI compliance efforts are both swift and thorough.
Book an appointment today.
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