0:00
ever heard of a Boi report now trust me
0:01
you're going to want to hear this
0:03
because it could mean the difference
0:04
between keeping your business afloat or
0:06
having significant penalties coming next
0:08
year from the federal government now if
0:10
you're wondering what a Boi report is
0:12
why it matters and if you need to file
0:15
one I'm going to break it all down for
0:16
you in layman's terms to keep it simple
0:19
and easy for you to understand now what
0:21
is a Boi report well it stands for a
0:23
beneficial ownership information report
0:26
and it's a new requirement under the
0:27
corporate transparency Act of 2021 now
0:31
these reports are designed specifically
0:33
to provide the government with crucial
0:35
information about who owns and controls
0:37
businesses here in the United States but
0:40
it's not always about government control
0:43
the primary goal is to enhance
0:45
transparency and help law enforcement
0:47
combat Financial crimes such as money
0:50
laundering cyber crimes terrorism
0:52
financing and tax evasion so there are
0:54
some good things that are going to come
0:56
out of filing this report for all
0:58
businesses in the United States all
1:00
right so who needs to file a Boi report
1:03
well the requirement applies to a wide
1:05
range of businesses operating in the US
1:07
but this mainly includes llc's which
1:10
stands for limited liability companies
1:12
whether you're a partnership or a
1:14
corporation you do need to file this
1:16
report there's other entities created by
1:18
filing with a Secretary of State's
1:19
office for the state that you're in but
1:22
there are 23 exemptions to this Rule now
1:26
a couple of those are sole
1:27
proprietorships that means that if you
1:29
just own the business by yourself and
1:31
you file it as a sole proprietor you'll
1:33
be exempt from this Boi report as it
1:36
stands right now also publicly traded
1:38
companies as well as banks credit unions
1:40
insurance companies and tax exempt
1:43
organizations that's just to name a few
1:45
if your business doesn't fall under one
1:47
of these exemptions you'll need to file
1:50
a Boi report so if you want to know more
1:52
go to the video description I've got a
1:54
link to the government site for fedson
1:56
which represents this Boi report details
1:59
now it's crucial to understand when you
2:00
need to file this Boi report because
2:03
depending on when you launched your
2:05
business and when you established it
2:07
with the secretary of state it could
2:09
vary on when this report is due the
2:11
first deadline applies to any business
2:13
created prior to January 1st of 2024
2:16
that happens to apply to my business
2:17
which is in freeze drying and that
2:19
deadline is January 1st of 2025 you need
2:22
to make sure you submit the Boi report
2:25
in the online filing or PDF form before
2:28
January 1st of 2025 now if you created
2:30
your business in 2024 you have 90 days
2:33
from the date of filing to submit this
2:35
Boi report now if that raises some alarm
2:37
bells to you because you haven't filed
2:39
yet because maybe you didn't even know
2:40
about this Boi report don't worry
2:42
contact a CPA or an accountant that you
2:44
have and ask them if there's still an
2:46
exemption or some type of extended
2:48
deadline I'm sure that they could help
2:50
you and lastly for all businesses who
2:52
file starting January 1st of 2025 you're
2:55
going to have 30 days to file this Boi
2:58
report from the date that you file with
3:00
your secretary of state make sure you
3:02
monitor these deadlines rewind in this
3:04
video to see which deadline you fall
3:06
into for the entity and the business
3:08
that you established but hang on there's
3:09
one more deadline unfortunately that you
3:11
need to know about and that is any
3:13
updates that you have to your business
3:15
within the ownership category you need
3:17
to make sure you file that update within
3:19
30 days of that update occurring to the
3:22
fedson Boi report filing all right so
3:25
how do you file this report well I'm
3:27
going to share with you actually me
3:28
going through it for my business my
3:31
freeze drying business so you can see
3:32
exactly the steps that are on the fedson
3:35
website that you'll also see when you
3:37
file your report as well now this really
3:39
didn't take that long to file as long as
3:41
you're not a complicated business if
3:43
you're much larger and you have
3:44
different ownerships it might take you a
3:46
little bit longer because you need the
3:48
identification of each owner to submit
3:51
and you actually have to have pictured
3:53
copies of their driver's license
3:55
passports things like that and put that
3:57
into the portal I'll share with you what
3:59
that look looks like now you're going to
4:00
want to create an account and then
4:02
follow the prompts to enter in all your
4:04
business information as you can see what
4:06
I'm doing I'm filling in all the
4:08
information pertaining to my business as
4:10
well as uploading my identification
4:13
document which was my driver's license
4:15
so that the government can verify that I
4:17
own the business you're going to review
4:19
all the information and make sure that
4:21
the ownership beneficiaries are all
4:23
submitted correctly once you get done
4:25
finishing that you just press submit and
4:27
then you'll get an email notification
4:29
that you've completed the Boi report
4:31
what happens if you don't spend the
4:32
short amount of time to fill out this
4:34
Boi report for your entity given the
4:37
deadlines that I just outlined in this
4:38
video well believe it or not it's not
4:40
just a monetary fine you could also be
4:42
criminally charged for not following
4:45
this Boi report now the penalties might
4:47
seem very extreme and they are but
4:49
there's a lot of good reasons why they
4:51
are and I already outlined that at the
4:52
beginning of the video which was the
4:54
Federal government's trying to protect
4:56
itself from outside entities trying to
4:59
create fraudulent company Financial
5:01
terrorism things like that so there are
5:03
a lot of good things that go into
5:05
creating this type of law but you do
5:07
need to know about the penalties so
5:09
let's go through those monetarily you
5:11
could be fined up to $500 a day for each
5:14
day that you don't file that Boi report
5:19
$10,000 that's a hefty amount and it's
5:22
probably not going to be tax deductible
5:24
so it's going to come straight out of
5:25
your pocket now criminally you could
5:27
potentially be in prison for up to 2
5:28
years for not filing this Boi report so
5:31
it's essential to take this requirement
5:33
seriously and ensure your report is
5:36
accurate and that it's filed on time now
5:38
as someone who filed this report for the
5:40
first time I have to keep in mind that
5:42
this is a new reality for all us
5:44
businesses and while it may seem like
5:46
it's just another bureaucratic hurdle
5:49
the consequences of not going through
5:51
those pieces is pretty large considering
5:54
that you can be in prison for up to 2
5:56
years and the fine is $500 every single
5:59
day we don't know how strict the federal
6:01
government's going to be on that fine
6:02
but personally for me I don't really
6:04
want to find out if the federal
6:05
government's going to be as strict as
6:07
they say they are so take the time file
6:09
that Boi report and you'll be smooth
6:10
sailing heading into next year for your
6:12
business if you're unsure about any
6:14
aspect of this Bo report you can one go
6:17
to the link in the video description
6:19
which I'll give you to fedson dgov
6:21
that's the website that created this law
6:23
and they list out all the information
6:25
you can also consult with your
6:26
accountant or find someone locally that
6:29
can describe to you what exactly you're
6:31
supposed to file and when those
6:33
deadlines are now if you're interested
6:34
in freeze drying and starting a freeze
6:36
drying business and the legal
6:38
requirements to start that I've got some
6:40
videos coming up about what it takes to
6:42
start a freeze drying business I'll see
