File Your Beneficial Ownership Form

With more than a decade of experience in Alcoholic Beverage Compliance, I've seen laws and regulations come and go. It seems like there's always a new form to fill out or a new declaration to file. In 2024, one new compliance requirement many businesses are dealing with is the beneficial ownership form.

Corporations, LLCs, and other US-based companies that were created with secretary of state filings must file a beneficial ownership form. If you haven't filed yours, you must do so by January 1, 2025. As far as compliance filings go, this is a fairly simple one, and most business owners can complete it themselves. 

In this guide, I break down beneficial ownership forms and filing steps to help you meet this new requirement without added stress.

What Is Beneficial Ownership and Why Does It Matter?

Beneficial ownership refers to any relationship with property, including a business, that offers a benefit to a person. In the context of beneficial ownership filing, it refers specifically to those who own and benefit from a business. Someone must be reported as a beneficial owner if they control or own a quarter or more of the business or have substantial control over it even without that ownership percentage. 

This new requirement is necessary because the federal government is promoting greater transparency in business ownership to counteract issues such as money laundering. 

There are exceptions to this requirement. For example, tax-exempt entities, some publicly traded companies, and banks may not need to make a report. Always review exemptions before you decide whether or not you need to file a form. At this time, the exemptions are mostly irrelevant to food and beverage companies. 

Steps to File Your Beneficial Ownership Form (BOI)

You can use the FinCEN beneficial ownership e-filing system to file your ownership form. Before logging in and starting the process, gather the information you'll need to complete the filing. This includes:

• The name, date of birth, address, Social Security Number, and a unique ID for each beneficial owner.

• The name, DBA names, entity type, address, tax ID number, and jurisdiction of formation (if applicable) for the business.

Fill out the form online and carefully review it for any errors before submitting. It might be helpful to ask someone else to proofread it to minimize the risk of typos. The form is easy to complete, and the entire process is streamlined and shouldn't take long. 

Important Deadlines and Compliance Requirements

For any company created or registered before January 1, 2024, the deadline for fulfilling beneficial ownership requirements is January 1, 2025. A company created or registered in 2024 must meet beneficial ownership filing requirements 90 days after the registration or creation was effective—whichever is earlier. Companies created or registered in 2025 and after have 30 calendar days to complete beneficial ownership filings. 

Failing to file required beneficial ownership forms can lead to serious consequences. You could end up owing $500 per day for every day you didn't file the form after the relevant deadline. In some cases, you may face criminal penalties, up to and including time in prison. Criminal penalties are typically reserved for continued violations that may indicate potential fraud and not for a first-time failure to file. 

Tips for an Easy and Accurate Filing Process

Having the right information is the best way to ensure an easy and accurate filing process. Don't make assumptions about ownership if you aren't sure. Consult business documents and use that information to complete the forms. Double-check with everyone involved to ensure you are capturing all of the beneficial owners on the form.

I believe educating yourself about compliance and filing requirements is never a waste of time. You never know what you might learn, and reading up on requirements for yourself can provide some peace of mind. You might consider browsing the FinCEN frequently asked questions about beneficial ownership information to see if the government agency has already answered the questions you have. 

Finally, once you complete your online filing, save your confirmation for future reference. You may need to prove that you filed the form and when to show you were compliant with the requirement. 

When to Seek Professional Help With Your Filing

While this BOI filing guide is all many small business owners need to file their own beneficial ownership forms, professional help can be useful in some cases. This is especially true if you have a complex ownership structure and want to capture all the relevant data.

For instance, if a business has several owners or stakeholders or a complex ownership layer, with partial ownership held by both people and other businesses, it can be daunting to complete this form. The team at Balanced Business Group is available for guidance if needed, and you can also check out our custom GPT, the Beneficial Ownership Nerd, for in-the-moment information. 

Meet the Deadline and Stay Compliant

Staying compliant with tax, regulatory, and other mandated filings is critical to the success of your food and beverage business. While these types of forms may not add much to the flavor of your day, handling compliance requirements as soon as they hit your to-do list is one of my favorite business tips. Completing forms accurately and promptly helps you avoid missing deadlines and prevent issues related to non-compliance and penalties.

If you haven't already completed your beneficial ownership form, make it a point to do so today or this week. Most small business owners can handle this filing process on their own. However, if you have any questions about the process, don't hesitate to reach out. 

Learn more about CPG reporting, paperwork, and accounting, including why your accountant should be a CPG expert. Reach out to Balanced Business Group for personalized assistance with your CPG compliance needs.

Author: Nicole Elizabeth 

Nicole Elizabeth is a seasoned expert in Alcoholic Beverage Compliance with over a decade of experience in the wine industry. As the Compliance Team Lead at BBG, she advises wineries on navigating complex regulatory landscapes. Nicole’s previous roles as an Alcohol Beverage Paralegal at Dickenson Peatman & Fogarty and Compliance Specialist at Rodney Strong Vineyards have given her deep expertise in licensing, reporting, and compliance issues. With a background in Wine Studies and Marketing from Sonoma State University, Nicole brings a comprehensive understanding of both the regulatory and business aspects of the wine industry.