If you own an established equine business, you must be aware of an important new requirement: filing the FinCEN Beneficial Ownership Information (BOI) Report. This mandate, part of the Corporate Transparency Act (CTA), is designed to promote transparency in business ownership and combat illegal activities like money laundering. However, failing to comply with this requirement can result in severe penalties, so it’s crucial for all equine business owners to act before the January 1, 2025, deadline.

What is the FinCEN BOI Report?

The BOI report requires businesses to disclose information about their beneficial owners—those who own or control at least 25% of the business or exercise significant control. This includes all types of equine businesses, such as stables, trainers, breeders, tack shops, and equestrian centers.

The report will collect details about your business and its owners, including names, addresses, and identification documents, which will be securely maintained by the Financial Crimes Enforcement Network (FinCEN) for use by law enforcement and regulators.

Who Needs to File?

Businesses that qualify as “reporting companies” under the CTA must file. This generally includes:

• Existing businesses registered before January 1, 2024, which must file their BOI report by January 1, 2025.
• New businesses formed on or after January 1, 2024, which are required to file within 30 days of formation.

Sole proprietorships, partnerships, LLCs, and corporations typically fall under these requirements. If you’re unsure, consult with a legal or financial professional to determine your obligations.

What Happens If You Don’t File?

Failure to comply with the BOI filing requirement can result in serious penalties, including:

• Criminal penalties of imprisonment for up to two years and/or a fine of up to $10,000.
• Civil penalties of up to $591 per day for each day the violation continues.

These penalties underscore the importance of filing the report well before the deadline to avoid legal and financial repercussions.

What Information is Required?

To file your BOI report, you will need:

1. Business Information: Legal name, address, and EIN (Employer Identification Number).
2. Beneficial Owner Information:
   • Full legal name
   • Date of birth
   • Residential address
   • A unique identifying number (e.g., driver’s license or passport) and a copy of the document

How to File

The BOI report can be submitted electronically through the FinCEN portal. Visit FinCEN’s website for filing instructions and resources.

Don’t Wait—Take Action Now

The January 1, 2025, deadline is fast approaching, and failing to file on time can have significant consequences for your equine business. Take the time now to:

• Gather the necessary information about your business and its beneficial owners.
• Consult a financial or legal professional for guidance if needed.
• File your BOI report promptly to avoid penalties.

Being proactive ensures your equine business remains compliant, secure, and focused on what you love—working with horses. Don’t wait until it’s too late; start your BOI filing process today!