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Planning Ahead: Why Event Services Businesses Must File A BOI Report Soon

By FileForms | November 13, 2023
Planning Ahead: Why Event Services Businesses Must File A BOI Report Soon

The demanding world of events services, entrepreneurs are required to successfully manage a host of responsibilities simultaneously. Whether orchestrating destination weddings and annual shareholder meetings or feeding hundreds of guests and capturing timeless moments through a unique lens, there is much business owners must oversee. Among the many daily concerns are logistics management, food safety and hygiene, staffing issues, technical and equipment issues, scheduling, and ensuring client satisfaction. While these responsibilities are enough to keep even the most astute entrepreneur on their toes, there emerges a new federal mandate that demands immediate attention: the need to file a Beneficial Ownership Information (BOI) report.

This critically important document, introduced by the federal government, seeks to enhance commercial transparency by identifying individuals with ownership and control over specific business operations. Neglecting this mandate can lead to substantial fines and potential imprisonment.

Beneficial Ownership Defined

Beneficial ownership pertains to individuals or entities that exert control or influence over a business, even if it’s legally registered under a different name. To combat money laundering and terrorist financing, the U.S. Congress introduced the Corporate Transparency Act (CTA) on January 1, 2021. As a part of the Anti-Money Laundering Act of 2020, the CTA mandates businesses in the events, catering, and photography sectors to disclose their beneficial ownership details to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2024.

Filing a BOI Report is Critical for Event Services Businesses

The BOI report is not an optional filing or an administrative task business owners can casually dismiss. It’s a mandate that can have profound businesses, no matter how small. Designed to be a robust shield against illicit activities like money laundering, the BOI report aims to foster transparency and champion legitimate commerce within these sectors. This transparency is not just about adhering to regulations; it’s about building trust with stakeholders, clients, and the broader community.

Severe Penalties for Businesses That Don’t File

The consequences for not filing a BOI report are both extensive and severe. Entities, like those in events services, and especially those uninformed, unprepared, or simply embroiled in other operational duties that distract them from this requirement, could face monetary penalties that could alter their financial stability and livelihood. 

Event services businesses found in breach could incur maximum fines of $500 per day up to $10,000. Intentional non-compliance or falsification of information could result in criminal charges, with potential imprisonment of up to two years. Beyond the financial and legal penalties, non-compliance can tarnish a business’s reputation, leading to operational damage or even complete forfeiture of the business.

Don’t Count on the U.S. Government to Over Communicate

Historically, the U.S. Federal Government’s communication strategy regarding new mandates has been marked by its limited outreach. This has led to instances where event services business, individual entrepreneurs, and even entire sectors were blindsided, resulting in widespread confusion and, occasionally, non-compliance. Past mandates like Immigration and Visa Deadlines, Medicare Enrollment, and the Real ID Act, are examples of this pattern. 

For event service businesses seeking guidance on the Beneficial Ownership Information report, the following federal government platforms provide comprehensive information, guidelines, and resources:

Understanding the Corporate Transparency Act (CTA) 

The passing of the CTA marked a turn in how the U.S. government addresses financial transparency and business governance. This pioneering legislation focuses on anonymous corporations or vague entities like shell companies. Under the CTA’s guidelines, businesses, designated as reporting companies, are required to furnish comprehensive disclosures about their beneficial owners to FinCEN. This legislation is not simply about being compliant; it’s about setting a new standard for transparency in the events services industry.

Reporting entities are required to 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

Optional:

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

How FileForms Helps Event Services Business Remain Compliant with the BOI Report

In light of the potential penalties and legal consequences, a casual approach towards filing a BOI report is not recommended. The proactive, informed, and prepared approach is the best way for event services businesses to address the filing requirements. 

FileForms is your complete solution for all business-related form and report submissions. We leverage state-of-the-art technology and expert services to ensure every client’s filing and reporting needs are met with precision. We offer invaluable guidance for businesses required to file a BOI report to FinCEN, guaranteeing compliance with all necessary standards

Our expertise encompasses:

  • Beneficial Ownership Information Reports
  • Annual Reports
  • Foreign Account Tax Compliance Act Reporting
  • Foreign Bank Account Reports
  • Registered Agent Services

This the proactive approach not only emphasizes the urgency and significance of accurate filing and reporting but also illustrates FileForms’ dedication to offering specialized solutions for event services businesses, no matter the size.

As the deadline for the Beneficial Ownership Information report nears, it becomes more important for event services businesses to prepare. This document is not a mere formality; it’s a mandate by the U.S. Federal Government. Get started with FileForms today so you can stay proactive, transparent, and compliant.

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