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Filing Your BOI Report is A Lot Like Filing Your Taxes

By FileForms | September 5, 2023

Beginning in 2024, businesses nationwide must begin filing their Beneficial Ownership Information (BOI) reports, a new reporting requirement resulting from the Corporate Transparency Act.

If you’re a business owner or beneficial owner of an LLC in the United States, you may wonder whether you should file it by yourself, use an attorney, or use a filing platform like FileForms. Filing your BOI report is a lot like filing for your taxes, and we’re here to help you draw the comparison.

Both Your Taxes and Your BOI Report Need to be Accurate

Filing your taxes when you’re single with a part-time job and no dependents may be simple, but as life goes on and complexities arise, the road to compliance can get quite bumpy. Have you started a business? Bought or sold a home? Sold some stocks at capital gains?

While all of these things are great, each additional wrinkle only complicates the filing process. Accurately filing your taxes requires harvesting data about many aspects of your life, both transactional and non-transactional. As you can imagine, non-transactional aspects are difficult to capture in a transactional filing. Distilling the personal aspects of your life and business onto a tax form isn’t exactly easy, especially when they cannot be tied to tangible transactions.

Americans spend countless hours collecting and maintaining this data, much of which may not even be relevant to their taxes. Hiring a competent advisor or utilizing technically sound software may simplify the process (like a familiar turbocharged Intuit product for taxes) can solve many of these issues.

Filing the new Beneficial Ownership Information (BOI) Report will be no different. Albeit slimmed down slightly, the BOI report will require much of the same data and analysis as tax filing.

Filing a BOI report will be complex and new, a combination that can easily set up a business filing for failure. Any time a new informational report or form is required, the user on the other end has to educate themselves, collect and manipulate the data, and ensure it’s filed timely in the manner in which the government requires.

Don’t be fooled by the simplicity of the BOI form, though. Beneficial ownership reporting, on the surface, seems easy enough. However, when you consider all the technical nuances, like indirect ownership or controlling interests, it can complicate the report in a hurry.

Both simple and complex business structures require a detailed analysis to ensure accurate reporting and compliance with this new legislation. Don’t be alarmed, though. Reporting can become a breeze with a competent advisor armed with only the best technology, like FileForms. Not only will you have access to industry experts with decades of experience, you’re also getting advisors armed with the proprietary tools necessary to get the job done efficiently and effectively.

Look to Save Time and Money

Individuals filing their taxes should be making sure they’re taking advantage of every portion of the tax code that applies to them. What income is taxable versus non-taxable? Are you taking advantage of write-offs, especially if you own a business?

Saving money as an individual filing your taxes means gathering the whole picture of your life and its subsequent transactions and manipulating it in a way that is clear and concise. Having a trusted advisor armed with a superior software platform to help you point out seemingly nuanced aspects of your life that have a material impact on your taxes is key.

Again, the process of filing a BOI report is no different. FileForms’ robust platform and team of advisors exist to save you money.

Additionally, filing your BOI report could take more than 120 minutes per entity, even for the simplest ones. Companies with multiple entities and complex business structures will quickly rack up hours just gathering data before they ever even file a Report.

You, as a business owner or beneficial owner of an LLC, must weigh how much your time is worth working on filing reports versus running and growing your business.

But what if you file the report incorrectly, especially after spending countless hours laboring over them? You could incur penalties of $500 per day, up to $10,000, or even jail time. Just like when you’re filing your taxes, you want to feel secure, knowing that all reporting requirements are met to the letter of the law.

What is it worth for you to sleep soundly at night with no anxiety that the IRS will come knocking on (hopefully not down) your door?

How FileForms Can Help You File Your BOI Report

Many taxpayers utilize robust platforms, such as H&R Block or TurboTax, to be their sherpa through this potentially precarious process – plethoras of pitfalls, penalties and punishments await persons proceeding alone. These platforms walk you, step by step, through the process of filing your taxes in an intuitive, accurate way; they help capture the big picture (from a tax perspective) of your life over the last year.

You don’t have to be left hanging with filing your BOI report, either. Why navigate these new reporting requirements yourself, putting your business at risk? Instead of spending two or more hours guessing how to report your beneficial owners, reach out to the specialists at FileForms.

FileForms, leading with a team of industry experts in regulatory filing, is here to slash your BOI filing time, cost, all while making it accurate and relieving you of any anxiety. Contact us now!