Mandatory FinCEN BOI Filing: What Therapists Need to Know

Photo above by Sixteen Miles Out on Unsplash.

As a practice owner, you may have heard about the new FinCEN (Financial Crimes Enforcement Network) Beneficial Ownership Information (BOI) filing requirement. This blog post will guide you through the essential details of this mandatory filing, including who needs to file, deadlines, and how to complete the process.

Introduction to FinCEN BOI Filing

The FinCEN BOI filing is a new requirement under the Corporate Transparency Act, aimed at enhancing transparency in business ownership and preventing financial crimes. This filing requires certain business entities to disclose information about their beneficial owners to the U.S. government.

Penalties for Late Filing are Astronomical 👨‍🚀 (not in a good way)

This is a deadline you don't want to miss.

The penalty for missing the filing deadline is $591 per day – that totals over $215k for the year. 😧

PLUS there are potential criminal penalties of up to $10,000 and two years imprisonment. 😑

The good news?

Filing is easy. 😌

PLUS I've recorded step-by-step instructional videos for how to use the FinCEN website to complete the filing. These are the actual videos of me completing the filing for my LLC.

Between reading this email, watching my instructional videos and then completing the filing online yourself, this should take 30 minutes max.

Let's break down the requirements. 😃

⚠️ But before we do, remember I'm not an attorney and therefore am not the end-all be-all expert here. If you have questions around these requirements, please, please, please seek out the counsel of a licensed attorney!

Who Needs to File a BOI Report with FinCEN 🤔

Any business entity formed by filing paperwork with the Secretary of State Office. That means every LLC, PLLC (Professional Limited Liability Company), Corporation or Professional Corporation must file. Some types of partnership may also need to file.

If you operate through an unincorporated business entity (sole proprietorship and some types of partnerships) you probably do NOT need to file.

Each business entity needs to disclose personal information about its "Beneficial Owners".

A Beneficial Owner is anyone who owns 25% or more of the entity OR who can exercise substantial control over the entity (think C-level executives).

For most small companies, there will likely only be one or two beneficial owners.

But, again, if you're uncertain either consult with an attorney or consider following the guidance I received which was "if in doubt, file."

The "if in doubt, file" guidance makes sense to me. But if you have specific questions, seek our professional legal advice!

What are the FinCEN BOI Reporting Deadlines 🗓️

Here are the key deadlines to remember:

• For business entities formed prior to January 1, 2024: File before January 1, 2025
• For business entities formed in 2024: File within 90 days after filing
• For business entities formed on January 1, 2025 or later: File within 30 days after entity formation

AND if anything changes, you'll generally have only 30 days to update the filing!

• If your business entity has a new beneficial owner, you must update within 30 days.
• If any of your personal information changes (different address, name change, etc.), you have only 30 days to update it!

These deadlines are quite short and who knows how or if they'll be enforced. But better to be safe than sorry. Do your very best to hit these deadlines.

And if you find out you're already late, don't panic! Just file as soon as possible, and I have a feeling you'll probably be ok. But don't delay! (And again, if you're late and worried, that's a great time to reach out to a good attorney.)

Information You'll Need to Complete the FinCEN BOI Filing

The information you need to complete the filing is very basic. It should take you virtually no time to pull it together:

• Your login.gov credentials (or create an account if you don't already have one).
• Electronic image of your driver's license or passport 🪪
• EIN (Employer Identification Number) for each business entity 🧾
• Full Business entity name
• Any Doing Business As ("dba") names your business entity uses
• Everything else you should pretty much know off the top of your head!

First: Create a Personal FinCEN ID

This is an optional step, but it makes the rest easier.

You'll create a personal identification number which links to a record with all the required personal information.

Having this ID is particularly valuable if you have beneficial ownership of multiple entities (each of which must complete their own filing).

Then for any entity over which you have beneficial ownership, you simply have to provide your FinCEN ID (rather than entering – or having to share with anyone else – your sensitive personal information).

Watch my step-by-step video of how to use the FinCEN website to create your personal FinCEN ID. ⬇️

👉 Then create your own Personal FinCEN ID here.

Second: Complete your BOI Filing

Second, you'll need to complete the required beneficial ownership information ("BOI") filing with FinCEN for EACH business entity of which you have beneficial ownership.

This is also pretty easy and straightforward. You'll enter a few basic facts about your business, including name, state of registration, address, dba's and its EIN. From there, you just enter the personal FinCEN ID for all beneficial owners (in many cases that's just you, the owner).

Watch my step-by-step video of how to complete your business entity BOI filing on the FinCEN website. ⬇️

👉 Then complete your own BOI filing here.

Third: There's no third! It's fast and easy! 🍳

Seriously, between reading this blog, watching my videos AND completing the filing, I bet you can be done in 30 minutes. MAX.

With all the fees and penalties on the line, that 30 minutes of time investment offers an excellent return!

But I get it… I dragged my feet on this for months thinking it was going to be WAY more painful, overwhelming and confusing than it actually was.

Like most things, it gets less scary and overwhelming once you sit down and start doing it.

So what are you waiting for?!

Knock your FinCEN BOI out today and rest easy knowing it's off your plate!

PLUS: some are speculating that there will be a flood of new filings toward the end of the year which could crash the FinCEN website – or at least really slow it down. Futilely hitting refresh on your browser window is not what you want to be spending your time doing during the holiday season!

Conclusion

The FinCEN BOI filing is a crucial new requirement for many business entities. By understanding who needs to file, the deadlines involved, and the information required, you can ensure your compliance and avoid hefty penalties. Remember, the process is straightforward and can be completed in about 30 minutes. Don't delay – complete your filing today and enjoy the peace of mind that comes with knowing you've met this important obligation.

Disclaimer

Turning Point is a registered investment advisor in the state of California. Please visit turningpointhq.com for important information and additional disclosures. This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes financial, legal or tax advice; a recommendation for purchase or sale of any security; or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Read the full Disclaimer here.