Critical Deadline Approaches for New Orleans Business Owners: Understanding the BOIR Filing Requirement
UPDATE: ANOTHER APPEAL HAS STOPPED THE REQUIREMENT TO FILE. BUT STAY INFORMED AS THIS MAY CHANGE AGAIN
New Orleans small business owners, like all businesses in America, face an important new federal requirement under the Corporate Transparency Act (CTA). The Beneficial Ownership Information Report (BOIR) mandates transparency in business ownership, and non-compliance can result in severe penalties. Here’s what local business owners need to know to protect their enterprises.
Understanding the BOIR Requirement
The BOIR is part of a nationwide initiative to combat financial crimes like money laundering and fraud. Under the Corporate Transparency Act, businesses must disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This creates transparency that helps authorities prevent the use of shell companies for illegal activities.
What Information Is Required?
Beneficial owners – individuals who own or control at least 25% of a business or exercise substantial control over it – must provide:
- Full legal name
- Date of birth
- Current residential address
- Government-issued identification number (such as a driver’s license or passport)
Impact on New Orleans Businesses
Our city’s vibrant business community includes thousands of small, locally-owned enterprises that may be unaware of this requirement. The stakes are high – non-compliance can result in penalties of up to $500 per day and potential criminal charges. For small businesses operating on tight margins, such fines could be catastrophic.
Who Must File?
The filing requirement applies to most:
- Corporations
- Limited Liability Companies (LLCs)
- Partnerships
- Other business entities formed under state law
Some organizations are exempt, including publicly traded companies, government entities, and certain regulated financial institutions. If you operate a privately-owned business and aren’t specifically exempted, you likely need to file. When in doubt, consult with a legal or financial advisor.
How to File Your BOIR
Filing the BOIR is designed to be straightforward and free:
- Visit FinCEN’s official BOIR filing website
- Gather information about your business and beneficial owners
- Complete and submit the online form
Most businesses can complete the process in under 10 minutes.
Protecting Your Business
The BOIR requirement serves a crucial role in maintaining financial system integrity. While it adds another task to business owners’ responsibilities, compliance is essential for:
- Avoiding costly penalties
- Contributing to a more transparent business environment
- Protecting legitimate enterprises from unfair competition
Pain for Black Owned Businesses
Next Steps for Local Business Owners
Time is critical. Take these steps now:
- Verify whether your business must file
- Collect required information about beneficial owners
- Submit your report through FinCEN’s secure portal
For specific guidance, consult your accountant or attorney, or visit FinCEN’s website for detailed instructions.
New Orleans’ small businesses are vital to our city’s culture and economy. Understanding and complying with the BOIR requirement helps protect your business while contributing to a more secure financial system. Don’t risk penalties – verify your obligations and file if required.
For the most current information about filing deadlines and requirements, visit FinCEN’s official website.