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Immediate Action Required for Specialty Retailers: Your BOI Report Needs to Be Filed

By FileForms | October 3, 2023
Immediate Action Required for Specialty Retailers: Your BOI Report Needs to Be Filed

Within our country’s diverse economic landscape, specialty retailers stand out as extraordinary options that enrich our shopping experiences. These businesses, ranging from florists and quaint local bookstores to artisanal bakeries and specialty bike shops, not only offer niche products and services but also contribute significantly to our national economy. Their presence ensures that consumers have access to unique products and personalized services that big box stores often can’t replicate.

However, the world of specialty retailing isn’t without its challenges. Amid concerns like inventory management, fierce competition with big box stores, and juggling the reliability of suppliers, there’s a new challenge on the horizon for businesses across the nation, including specialty retailers: filing a Beneficial Ownership Information (BOI) report.

Decoding BOI for Specialty Retailers

At its core, beneficial ownership refers to entities or individuals that hold significant control or influence over a business, even if the business is legally registered under a different name. Identifying beneficial owners is crucial in ensuring transparency in business operations, especially in an era where financial frauds, money laundering, and terrorist financing are genuine concerns. Recognizing the need for greater transparency, the U.S. Congress rolled out the Corporate Transparency Act (CTA) in 2021. Embedded within the broader framework of the Anti-Money Laundering Act of 2020, the CTA mandates that businesses nationwide, including specialty retailers, disclose their beneficial ownership details to the Financial Crimes Enforcement Network (FinCEN) beginning January 1, 2024.

The Consequences of Not Filing a BOI Report

The repercussions of neglecting the BOI report requirements are not to be taken lightly. Entities, especially those who might be unaware of this mandate or those preoccupied with the many challenges of running a business, stand to face severe consequences.

Businesses, including specialty retailers, found in violation could be slapped with fines of up to $500 per day, with a cumulative maximum of $10,000. More alarmingly, deliberate non-compliance or providing misleading information could lead to criminal charges, with potential imprisonment of up to two years. Beyond the immediate financial and legal repercussions, the long-term damage to a business’ reputation can be irreparable, leading to a loss of customer trust and, in some cases, even business closure.

The BOI Report: More Than Just Paperwork for Specialty Retailers and Other Businesses 

For many, the BOI report might seem like just another piece of administrative paperwork. However, its implications are far-reaching. This report is a testament to an entity’s commitment to transparency and federal compliance. In an age where consumers are becoming more and more conscious of where and how they spend their money, this transparency can be a significant differentiator, fostering trust and loyalty among customers.

The U.S. Government May Not Communicate Requirements Sufficiently

Historically, the communication from the U.S. Federal Government regarding new mandates is often not thorough enough. This often leads to confusion, misinterpretation, and, in some cases, unintentional non-compliance. For businesses, like specialty retailers, who are seeking clarity and guidance on the Beneficial Ownership Information report, several platforms offer comprehensive information:

The Corporate Transparency Act (CTA) Explained 

The introduction of the CTA marked a new era in financial transparency, especially for businesses like specialty retailers. This groundbreaking legislation targets not just large corporations but also smaller entities that might be used for illicit activities. Under the stringent guidelines of the CTA, specialty retailers, classified as reporting companies, are required to provide exhaustive disclosures about their beneficial owners to FinCEN. This isn’t just a bureaucratic requirement; it’s a step towards setting a gold standard for transparency in American business. 

Reporting company must provide the following information via a BOI report:

  • Legal name
  • Trade names, “doing business as” (d/b/a), or “trading as” (t/a) names
  • Current U.S. street address:
    • Principal place of business for domestic companies
    • U.S. business address for foreign companies
  • Jurisdiction of formation or registration
  • Taxpayer Identification Number

Indicate the type of filing:

  • Initial Report
  • Correction of a prior Report
  • Update to a prior Report

Information required for individual beneficial owners and company applicants:

  • Full legal name
  • Date of birth
  • Current address
  • Unique identifying number and its issuing jurisdiction (e.g., U.S. passport or driver’s license)
  • Image of the document showing the identifying number


  • Obtain a FinCEN identifier to use in future filings as an alternative to the above details

FileForms Is Your Partner in Compliance for the BOI Report and Beyond

In the face of such stringent regulations and potential pitfalls, specialty retailers would benefit from a reliable ally to navigate the complexities of compliance. FileForms is your trusted partner. Our comprehensive suite of services ensures that every specialty retailer’s BOI report filing to FinCEN meets all necessary requirements and standards.

Our offerings include:

  • Beneficial Ownership Information Report filing
  • Annual Reports
  • Registered Agent services
  • Foreign Account Tax Compliance Act reporting
  • Foreign Bank Account Reports

Our approach is comprehensive and timely, emphasizing the urgency and significance of accurate filing and reporting. With FileForms by your side, specialty retailers can focus on what they do best, leaving the intricacies of compliance to the experts.

As the deadline for the Beneficial Ownership Information report inches closer, its importance cannot be overstated. This mandate from the U.S. Federal Government is a legally-required call to action. Get started with FileForms today and ensure your specialty retail business remains proactive, transparent, and compliant.