On December 23, 2024, the federal Court of Appeals ruled that beneficial ownership information reporting would once again be mandatory. However, on December 26, 2024, a different panel for the Fifth Circuit issued an order vacating the Court’s December 23 ruling. As a result, BOI reporting is currently voluntary. This article has been updated to reflect these changes.
Like a scary story whispered around a campfire, the U.S. Financial Crimes Enforcement Network’s (FinCEN) “beneficial ownership information reporting” deadline has authors shaking in their boots.
(Threats of $500 a day fines for noncompliance can have that kind of effect on people.)
But what is it exactly?
Who’s impacted?
And what the heck are you supposed to be doing about it?
That’s what I’m going to shed some light on for you today.
IMPORTANT: I’m not a lawyer (much to my mother’s dismay), so this article shouldn’t be taken as legal advice. However, I’ve done my best to gather every piece of relevant information authors need to know about BOI and summarize it in a clear, easy-to-follow guide. If you need legal help, please seek the advice of a lawyer.
With that disclaimer out of the way, let’s dive right in.
We’ll start with the big, obvious question…
What is Beneficial Ownership Information (and What’s its Purpose)?
Beneficial ownership information is identifying details that show who’s really in charge of a company — whether they’re the face on the business card, the puppet master behind the scenes, or just the person cashing the checks while pretending they’re not involved.
On January 1, 2021, the U.S. Congress passed the Corporate Transparency Act (CTA), which made beneficial ownership information reporting a requirement by law.
Its goal? Per FinCEN, it’s to:
“Make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.”
What’s the Penalty for Violating BOI Reporting Requirements?
Brace yourself…
According to the Corporate Transparency Act, if you “willfully” ignore the BOI reporting rules, you’re basically setting a financial time bomb that costs you $500 a day.
And because inflation loves to keep things spicy, that number is actually (as of this writing) $591. So, congratulations — you’re losing money faster than you ever thought possible.
But wait, there’s more!
If you’re really committed to bad decisions — like not filing, lying about your ownership, or ignoring updates — you could earn yourself up to two years of free housing in federal prison and a $10,000 fine.
What Authors are Impacted by Beneficial Ownership Information?
If you’re an author living in the United States and your company’s…
- a corporation,
- set up as an LLC, or
- created by the filing of a document with a secretary of state or any similar office under the law of a State or Indian tribe
…you're impacted by BOI.
And if you’re a foreign company (corporation, LLC, etc.) registered to do business in any U.S. State or Tribal jurisdiction by filing a document with a secretary of state or similar office of the State or Tribe…
You’re impacted too.
In short:
- Is your author business an LLC?
- A corporation?
- Not one of the 23 types of entities that are exempt?
Then BOI applies to you.
Are Sole Proprietor Authors Impacted by BOI?
No, thankfully. However, there’s one exception…
And it boils down to how your sole proprietorship was created.
If your sole proprietorship was created — or, if foreign, was registered to do business — in the United States by filing a document with a secretary of state or similar office, you’re still impacted.
But that’s not going to be the case with most sole proprietors.
Even if you filed a document with a government agency to get…
- an IRS employer identification number,
- a fictitious business name, or
- a professional or occupational license
…as a sole proprietor, you’d still be exempt from BOI.
FinCEN’s FAQ section has more information so you can confirm your specific situation (which you absolutely should do).
What’s the Deadline for BOI Reporting?
That’s the million dollar (or $591 a day, to be more accurate) question.
Up until December 3, 2024, the BOI reporting deadline was January 1, 2025 (for businesses formed before 2024). If you formed your business some time in 2024, you had 90 calendar days to file your BOI report.
But after over a dozen cases were filed in the U.S. District Courts to challenge the legality of the Corporate Transparency Act and the BOI filing requirements, a nationwide injunction was ordered and the deadline was — temporarily — lifted.
I say “temporarily” because the Treasury Department filed a Notice of Appeal to the U.S. Court of Appeals for the Fifth Circuit, and on December 23, 2024, the Fifth Circuit lifted the injunction, thereby making BOI reporting mandatory again.
But then on December 26, 2024, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23 order.
As a result, BOI reporting is once again voluntary.
That's where things stand at the moment, but here's the reality:
BOI reporting could go from voluntary to mandatory (again) at the drop of a hat.
You can sign up for FinCEN updates via email or text by clicking here, but if you’re someone who will eventually be required to report and you want to get it over with, filing is surprisingly straightforward.
How to File for Beneficial Ownership Information
First, go to the BOI E-Filing website:
Next, choose whether you want to file via PDF (where you can work offline at your own pace) or via an online form.
The report is 4 pages long and has 51 questions (with the last one being a request to upload an image of an identifying document, such as your driver’s license).
Optionally, you can create a FinCEN ID, which is supposed to simplify the reporting process.
That’s all there is to it.
Answer fifty or so questions, upload a file proving you’re you, and click a few buttons. If you have your information handy, you could complete the entire process in the time it takes to finish your first cup of coffee.
There’s no filing fee, and you don’t need an attorney or certified accountant.
If you need help, here’s a 5-minute video that walks you through the entire process step by step:
That’s Everything Authors Need to Know About BOI Reporting
No one knows how the Corporate Transparency Act and the BOI filing requirements will ultimately play out in the courts. Reporting could become mandatory again, or it could stay voluntary.
The good news is you’re now armed with knowledge. Regardless of how things turn out, you know BOI isn’t a big, scary monster you should fear.
In this guide, you learned:
- What Beneficial Ownership Information is
- The penalty for noncompliance
- Who’s impacted (and who’s not)
- And how to file your BOI report
When the time comes to file (if it comes), you’re ready.
You’ve got this.
Good luck.
- Kindle Direct Publishing 
