BOI Filing: Reporting Requirements for Companies in Maryland

The Corporate Transparency Act ushered in a new era of stringent Beneficial Ownership Information (BOI) filing at the federal level. Non-exempt business entities operating in Maryland also have to abide by these BOI filing rules. In all aspects, looming deadlines with high stakes for compliance demand nuance in understanding BOI reporting requirements to avoid penalties.

This guide encompasses, in broad detail, the BOI filing requirements for companies in Maryland. It assists a business in understanding the complexities of the Corporate Transparency Act and makes timely filings of correct BOI reports.

What is BOI Filing?

BOI filing is a report on the beneficial ownership filed with FinCEN. It was designed by the Corporate Transparency Act to bring more transparency into business operations and thus prevent illicit financial flows.

The basic components of BOI filing will include the following:

• Identification of the beneficial owners and applicants of the company
• Filing of comprehensive information relating to ownership and control structure
• The accuracy of the BOI report has to be ensured to avoid any penalties under the Act

For Maryland companies, the rules are the same as those applied across the nation, but there are unique considerations based on the business environment in the state.

BOI Filing Deadlines for Maryland Companies

The deadlines for BOI filing depend on the date of formation of the company:

• Existing Companies – Businesses formed before January 1, 2024 shall file their BOI reports by January 1, 2025.
• New Filers – Filers created on or after January 1, 2024 must file their first BOI report within 90 days of creation.

Thus, Maryland companies must not be late in submitting the BOI reports in order to keep themselves safe from penalties under the Corporate Transparency Act.

Key Information for Filing BOI

A company in Maryland should, while filing the BOI report, include the following:

• Beneficial Owner Information – Personal information like full name, DOB, address, and unique identification number, such as a driver’s license or passport. FinCEN ID, if assigned, may be provided in lieu of the other identifying information.
• Company Applicant Information – Information about individuals who filed the company formation or registration documents.
• Entity Information – Legal name, doing business as name (if different), physical address, and FinCEN ID number (if assigned).
• Ownership Information – Ownership percentages and type of ownership, such as direct and indirect.

How to File Your BOI Report

To file your BOI report, follow these steps:

• Gather Records – Ownership agreements, identification documents, and certificates of formation.
• Identify the Beneficial Owners – Those persons who, directly or indirectly either own at least 25% of the company or have substantial control over it.
• BOI Report – Fill in the information as provided by the forms given by FinCEN or using any electronic filing system.
• Report Filing – File it via the FinCEN online portal before the BOI filing deadline.

Penalties for Non-Compliance

Failure to comply with filing with the BOI authority in due course can attract some pretty serious sanctions, including:

• Fines of up to $500 per day for late or incorrect filings
• Criminal charges, including imprisonment, for willful violations

Therefore, Maryland businesses should do everything possible to ensure they follow the Corporate Transparency Act to avoid these penalties.

FAQs on BOI Filing for Maryland Companies

1. What is the role of the FinCEN ID in BOI filing?

A FinCEN ID lets the beneficial owners give a unique identifier instead of giving personal information; thus, streamlining the filing process while maintaining privacy.

2. Are LLCs in Maryland required to file BOI reports?

Yes, LLCs in Maryland are required to file BOI reports unless an exemption is explicitly covered under the Act.

3. What happens if my company’s ownership information changes?

Any changes in ownership or control shall be updated within 30 days of the change in a revised BOI report.

4. How does the CTA protect the confidentiality of BOI reports?

BOI reports will be held by FinCEN within a database that is safe and not accessible to the general public. They will also not be disclosed upon request, like other reports, under FOIA.

5. Are there exemptions to BOI filing requirements?

Certain entities, like publicly traded companies and tax-exempt organizations, may be exempt. Refer to the Act for eligibility.

Conclusion

BOI filing is an important duty a company in Maryland has to perform regarding the Corporate Transparency Act. Meeting deadlines and being able to complete BOI reports will, in return, help businesspeople comply with requirements and avoid some pretty costly penalties.

Start your BOI filing now to beat the deadline and keep your company in good standing.