BOIR E-Filing: How to Stay Compliant and Avoid $10,000 Fines

Did you miss the BOIR filing deadline? Or maybe you're a foreign business owner who just learned you're still required to file? You're not alone, and the good news is that we can help you get back on track before those penalties add up.

Let's break down everything you need to know about BOIR filing in simple terms.

What is BOIR and Why Should I Care?

BOIR stands for Beneficial Ownership Information Report. It's a filing requirement that came from the Corporate Transparency Act (CTA), which was designed to combat money laundering and other financial crimes.

Here's what you need to know: The CTA requires certain businesses to report their beneficial owners, the real people who ultimately own or control the company, to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

Think of it as the government's way of knowing who actually owns and controls businesses operating in the United States. This helps prevent criminals from hiding behind shell companies.

Who Still Needs to File BOIR in 2026?

Here's a critical update: As of March 21, 2025, the filing requirement was removed for U.S. companies and U.S. persons.

But if you're a foreign entity registered to do business in the United States, you still need to file. This is the most important thing to understand right now.

Foreign reporting companies include:

• Corporations formed under foreign law

• Limited liability companies formed under foreign law

• Any other entities formed under foreign law that have registered to do business in any U.S. state or tribal jurisdiction

Even if your foreign company has a U.S. subsidiary or branch office, you need to file if you're registered to do business here.

What Were the Deadlines, and Did I Miss Them?

Let's be honest about the timeline:

For U.S. Companies (No Longer Required):

• Businesses formed before 2024 had until March 21, 2025

• Businesses formed in 2024 had 90 days from formation

For Foreign Entities (Still Required):

• If you registered to do business in the U.S. before March 26, 2025, your deadline was April 25, 2025

• If you registered on or after March 26, 2025, you have 30 calendar days from your registration effective date

If you're reading this in 2026 and haven't filed yet, you may already be facing penalties. But don't panic, filing now is still better than continuing to delay.

What Are the Penalties for Not Filing?

This is where it gets serious. The penalties for failing to file BOIR are no joke:

• $591 per day for each day the violation continues

• Maximum total penalty of $10,000

• Potential criminal penalties of up to 2 years imprisonment for willful violations

Let's do the math: If you're 30 days late, that's already $17,730 in potential fines (though capped at $10,000). The penalties accumulate daily, so every day you wait costs you more money.

The good news? Once you file, the daily penalties stop accruing. That's why acting quickly is essential.

What Information Do I Need to File?

Before you start the filing process, gather these documents and details about your company:

Company Information:

• Legal name of your entity

• Any alternative names or "doing business as" (DBA) names

• Tax identification number (EIN, SSN, or ITIN)

• Complete current street address (P.O. Boxes don't count)

• Jurisdiction where your entity was formed or registered

Beneficial Owner Information (for each person who owns or controls 25% or more):

• Full legal name

• Date of birth

• Complete current residential address

• Identification document (driver's license, passport, or state ID) including a copy of the document

• Unique identifying number from the document

Submitter Information:

• Your name (the person filing the report)

• Your email address

How Does the BOIR E-Filing Process Work?

The official filing happens through FinCEN's secure online system. Here's what the process looks like:

Step 1: Access the System Go to FinCEN.gov/BOI and verify the site is secure by checking the URL's security information. Never enter sensitive information on an unsecured site.

Step 2: Choose Your Filing Type Select whether you're filing an:

• Initial report (first-time filing)

• Correction (fixing errors in a previous report)

• Update notification (changes to previously reported information)

Step 3: Request a FinCEN ID (Optional) You can request a FinCEN identifier to use instead of providing copies of identification documents each time. This is helpful if you're involved with multiple entities.

Step 4: Complete the Report Enter all required information for your company and each beneficial owner. Double-check everything, errors mean you'll need to file a correction later.

Step 5: Submit Securely Submit your report through the encrypted system and save your confirmation.

Do I Need to File Every Year?

No, BOIR is not an annual filing. You only need to file when:

• You're submitting your initial report

• Information changes (name, address, ownership changes)

• You need to correct an error in a previous report

Think of it as a "set it and update it when needed" system, not an annual tax return.

Should I Talk to My Accountant or Attorney?

Here's an important distinction: While your tax preparer can help you understand BOIR requirements, this is primarily a legal compliance matter, not a tax matter.

We recommend:

• Consulting with an attorney to determine if your entity qualifies as a reporting company

• Working with a compliance specialist who understands the CTA requirements

• Using a professional service like Sofytax that specializes in both tax and regulatory compliance

Don't assume your regular tax preparer handles BOIR filings, many don't. Make sure whoever you work with has specific experience with beneficial ownership reporting.

How Can Sofytax Help You Stay Compliant?

Let's make this simple: At Sofytax, we know dealing with federal reporting requirements can feel overwhelming, especially when you're managing a business across borders.

Our BOIR E-Filing System takes the stress out of compliance:

✓ We handle the entire electronic submission process from start to finish ✓ We ensure all your information is accurate and complete before filing ✓ We guide you through exactly what documents you need ✓ We help you avoid costly penalties by filing correctly the first time ✓ We keep track of when updates are needed so you stay compliant

You can schedule your online preparation from the comfort of your home, no need to visit an office or disrupt your business operations. We work on your schedule, whether you're in the same time zone or halfway around the world.

And yes, hablamos español. We understand that navigating U.S. regulatory requirements can be challenging enough without language barriers getting in the way.

Ready to Get Your BOIR Filing Done Right?

If you're a foreign entity doing business in the United States, don't let BOIR compliance keep you up at night. Every day you delay means potential penalties are adding up.

Here's what to do next:

Visit Sofytax to schedule your BOIR preparation appointment. Our team will walk you through the entire process, answer all your questions, and make sure your filing is accurate and complete.

Whether you missed the deadline or you're filing for the first time, we're here to help you get compliant and stay compliant. Let us handle the paperwork while you focus on running your business.

Schedule your online preparation today and protect your business from unnecessary penalties.

---

Have questions about whether your foreign entity needs to file BOIR? Contact Sofytax today for a consultation. We're here to help you navigate U.S. compliance requirements with confidence.