The Corporate Transparency Act brought new regulations for businesses, which apply to those operating in North Carolina. Among the most important components of the CTA is the BOI reporting requirement. Companies operating within North Carolina, including LLCs, should know what these reports are and how they can help avoid penalties and keep their entity compliant with federal regulations. We will discuss all that you should be aware of with regard to BOI reporting for companies in North Carolina in the article below.
What is BOI Reporting?
BOI reporting is the filing of information with respect to the natural persons who, directly or indirectly, own or have control over an entity. The CTA has imposed this rule on most businesses so that the government can easily identify the true owners of entities operating in or through the U.S. The main goal behind this is to support the prevention of fraud, money laundering, and other financial crimes by keeping corporate structures transparent.
Who Needs to File a BOI Report?
All businesses, including LLCs, conducting activities in North Carolina, are required, unless exempt, to file a BOI report. Exemption usually includes huge corporations, governmental institutions, and those organizations that may have been under the supervision of the federal government already. The majority of small to mid-sized companies, including startups, need to fulfil their BOI reporting.
File BOI Reports in North Carolina
Filing for LLCs in North Carolina is relatively simple but important. The following are details of the beneficial owners that an LLC needs to report:
- Name
- Date Of Birth
- Current residential or business address
- Unique identifying numbers from an acceptable ID-passport, driver’s license
This information must be accurate and up-to-date. To the extent changes to the ownership structure occur, an updated BOI report from the LLC is necessary for FinCEN.
Filing Deadlines for BOI Reports
For North Carolina corporations and LLCs, the due date for filing BOI reports is the same as the due date for federal filings. For new businesses, i.e., the businesses formed after January 1, 2024, the BOI reports must be filed with FinCEN within 90 days of formation. For all other entities, the compliance date is January 1, 2025. If a change in ownership occurs regarding a company, the updated BOI must be reported by the business within 30 days of such a change.
Corporate Transparency Act Penalties
Failure to comply with BOI reporting will be considered quite seriously and will be duly penalized. The inability to file or incomplete/incorrect filing will entail fines of up to five hundred dollars a day, not exceeding $10,000, against the North Carolina filing company. Besides, every individual responsible for the error in reporting can be sentenced to imprisonment for two years for willful violations.
Conclusion
BOI reporting is an integral part of the CTA, and for North Carolina businesses, there are certain responsibilities that need to be met. Since the accuracy and timeliness of reports are crucial, this holds the key to avoiding penalties while keeping in tune with federal regulations. It is nearing the deadline, and businesses need to gear up by taking the necessary steps toward preparedness in meeting reporting requirements under the Corporate Transparency Act.
If you own or operate a business in North Carolina and are still confused about the BOI requirements, worry not. You can visit our website or contact us. We will take care of your filing needs.