Beneficial Ownership Information
2024 Reporting Requirements for LLCs
Is your clinic set up as an LLC? If so, recent changes to federal reporting regulations may affect you. Starting January 1, 2024, all Limited Liability Companies (LLCs) must file a Beneficial Ownership Information (BOI) report as part of the Corporate Transparency Act (CTA).
While compliance can seem daunting, ensuring your clinic remains focused on patient care requires staying ahead of these regulations. This guide explains what BOI is, who needs to file, and how you can meet these requirements quickly and efficiently.
What Is the BOI Report?
The BOI report is a mandated filing that requires LLCs to disclose specific information about their beneficial owners—individuals who directly or indirectly own or control the business. This new regulation, introduced through the Corporate Transparency Act, aims to increase transparency in business ownership, combating financial crimes such as money laundering and tax evasion.
Who Needs to File?
The short answer? Every LLC formed or registered to do business in the United States.
Whether you’re a hospital organization, health clinic, or another type of business, compliance is mandatory. This ensures that no loopholes allow for anonymous corporate ownership, regardless of sector or industry.
Does this apply to all LLCs? Yes. Every LLC—without exception—must file a BOI report.
What Information Is Required?
To file a BOI report, you’ll need to provide the following for each beneficial owner (those owning at least 25% or exercising substantial control):
- Full legal name
- Date of birth
- Residential street address
- A unique ID number (e.g., passport or driver’s license) and an image of that ID
If your company was formed after January 1, 2024, you’ll also be required to file similar information for the individuals responsible for submitting the formation documents (also referred to as “company applicants”).
Pro-Tip for Clinics
Start compiling this information now to avoid last-minute stress. The sooner you gather the required details, the smoother your filing process will be.
Deadlines to Remember
Mark these dates in your calendar to ensure compliance and avoid hefty fines:
- LLCs formed before January 1, 2024 must file by January 1, 2025.
- LLCs formed on or after January 1, 2024 must file within 90 days of their formation.
Penalty Warning
Missing these deadlines could cost your clinic up to $500 per day in civil penalties, with a maximum of $10,000. Non-compliance can have lasting financial impacts, so act now to stay on track.
How to File the BOI Report
Great news! Filing the BOI report is straightforward and, best of all, free.
- Prepare Required Information: Make sure to have all beneficial owner and company applicant details ready.
- Submit Electronically Through FinCEN: Log in to the Financial Crimes Enforcement Network (FinCEN) portal to complete your submission.
- Consult With Professionals: Unsure about your filing? Reach out to a CPA or attorney to ensure accuracy and avoid mistakes.
By following these steps, you can complete your BOI filing quickly, freeing up time to focus on your primary mission—providing quality healthcare.
Consequences of Non-Compliance
Failing to comply with BOI requirements isn’t just a slap on the wrist. The penalties are steep, with potential consequences including:
- Civil Penalties: Fines of up to $500 per day for non-compliance.
- Criminal Penalties: Potential imprisonment for up to two years.
Staying proactive saves your organization from unnecessary legal and financial burdens.
Key Takeaways for Clinics
To ensure your hospital or clinic stays compliant with the new BOI requirements, we recommend that you:
- Verify Your Filing Requirement: Confirm that your clinic must file the BOI report. Spoiler alert—it almost certainly does.
- Compile the Required Information: Gather data on all beneficial owners and, if applicable, company applicants.
- Mark Your Filing Deadlines: Don’t risk penalties for late filings; plan to meet deadlines well in advance.
- Consult a Professional: If anything remains unclear, don’t hesitate to consult a CPA or attorney who specializes in business compliance.
Stay Compliant, Stay Focused on Your Patients
Compliance with BOI regulations may feel like just another administrative box to check, but meeting these requirements promptly protects your clinic from penalties and distractions. Your focus should remain on delivering exceptional patient care—don’t let compliance issues get in the way.
If you’re ready to ensure your clinic is fully compliant with the Corporate Transparency Act, start compiling your data now, and consider consulting with a professional. Remember, staying ahead of these deadlines ensures your clinic can continue to thrive and deliver high-quality care.
Special thanks to Mark Lynn, CRHCP, CCRS, for contributing to this blog post! Mark is the President of Healthcare Business Specialists, based in Chattanooga, TN.
