Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
As part of the U.S. government’s efforts to make it harder for bad actors to hide ownership structures and participate in money laundering, Congress passed the Corporate Transparency Act of 2021, which created a new beneficial ownership information reporting requirement.
Beneficial ownership information (BOI) refers to identifying information about the individuals who directly or indirectly own or control a company.
Who is considered a beneficial owner?
Refer to the information provided by our trusted partners at Wolters Kluwer. Justworks customers are eligible for discounted services. Contact our Support team for more details.
How do I know if I need to file a BOI report?
Take this quick quiz, provided by our partners at Wolters Kluwer, to determine if your company may be required to file a BOI report.
If it turns out you do need to file a BOI report, keep reading to learn more on what that means for your business.
What does this mean for you, a Justworks' customer?
This reporting requirement applies to most small businesses nationwide.
- If your company was created before January 1, 2024, you must file the initial BOI report by January 1, 2025.
- If your company was created on or after January 1, 2024, you must file the BOI report within 90 calendar days of receiving notice that your company’s creation or registration is effective.
How often do you need to file a BOI report?
If there are any changes to your beneficial ownership information after your initial BOI report filing, you will have 30 days from the date of change to update your filing report.
Changes requiring a new filing can include, but are not limited to, changes to ownership, changes to owner’s addresses, etc.
Take this quick quiz to determine if your company may be required to file a BOI report, provided by our partners at Wolters Kluwer.
What type of information needs to be reported?
There are three sectors of information that need to be reported:
- Information about the company such as full legal name, any trade or dba name, current address of the primary place of business, state of formation and EIN.
- Personal Identifiable Information for all beneficial owners, such as legal name, date of birth, current residential address, and a unique identification document (such as passport or driver’s license).
- Personal Identifiable Information for applicants (applicable to companies formed on or after January 1, 2024). In addition to the information provided for beneficial owners above, the business address must be included.
Are there penalties for not filing?
A person who willfully violates BOI reporting requirements can face civil penalties up to $500 (subject to inflation, currently $591) for each day of violation, as well as criminal penalties of up to two years imprisonment and a fine of up to $10,000.
Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
Do you need to file?
Justworks has partnered with Wolters Kluwer to help small businesses stay compliant and accurately file BOI reports with the Financial Crimes Enforcement Network (FinCen) so you can continue to grow with confidence. If you are not sure if you are considered a reporting company, or where to start the filing process you can connect with our partner to get started.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.