From 2024 onwards, business owners across the U.S. – including the state of Maryland – have one extra form to think about: the Beneficial Owners Information Report, or BOIR. Introduced by the Financial Crimes Enforcement Network (FinCEN) as part of the Corporate Transparency Act (CTA), the BOIR is a crucial new weapon in the fight against illicit business activity, like money laundering.
However, since it’s such a new piece of paperwork, many business owners are unsure about how it works, and, more specifically, how they’re supposed to fill it in. In this technological age, it might not surprise you to learn that there are pieces of software specifically designed to aid you in completing your BOI reports on time and in full. This guide explains how they work and why to use them.
How to File a BOI Report in Maryland
All BOI reports for Maryland businesses must be filed online via the FinCEN BOI E-Filing System. Thanks to this, there’s no need to worry about physical forms or paperwork getting lost in the mail, to name but a couple of typical issues. However, before you log on and start filling in your form, it’s worth knowing the full BOI reporting process.
Here it is, broken down into simple steps:
- Figure out who counts as a “beneficial owner” of your business. The CTA goes into specific details on this. But, as a general rule, anyone who owns part of the business’s equity interests or has a reasonable amount of control and influence over the business counts as a beneficial owner.
- Once you’ve identified all owners, collect their data. You’ll need basic personal info for each one, like full names and addresses, along with copies of a photo identification document (like a passport) for every owner too.
- Log onto the aforementioned e-filing system and start entering the relevant data. You can choose to either fill in a PDF file on your own time or just type everything in via your browser on the online form. Either way, when you’re done, check everything to verify it’s all correct and then submit it.
Who Needs to File BOI Reports in Maryland?
Owners of corporations, limited liability companies (LLCs), and several other types of business entities in Maryland all need to file BOI reports. In short, if you made a business in Maryland and had to register it with the Secretary of State, you most likely need to file a BOIR. However, there are still certain businesses that are exempt from this.
When Do You Need to File Your BOI Report in MA?
There are strict deadlines for filing BOI reports. However, the exact specifics of those deadlines can vary from business to business, depending primarily on when it was established. In general, those that were established earliest have the most lenient deadlines. But, regardless of when your deadline is, it’s imperative to file in time to avoid unwanted penalties (more details on that below).
Here are the specific deadlines for Maryland businesses, based on business creation date:
- Before 2024: If your business was officially established pre-2024, your BOIR deadline is January 1, 2025.
- During 2024: For businesses created in 2024, the deadline is 90 days after the date when the business was formally registered.
- Post 2024: For businesses created in 2025 and after, the deadline is just 30 days from the date your business was created.
Note that if you miss the deadline, you can be fined up to $500 for each day that you continue to fail to provide your BOIR. You may even face criminal charges in some cases, with serious penalties of up to two years in prison and $10,000 in fines.
What Is BOIR Software?
With the basics of BOI reporting covered, let’s return to our titular topic: BOIR software. First, what is it? As the name implies, BOIR software is computer software designed to assist with the BOIR process. It can help you by providing alerts and notifications when you need to fill out or submit your report, letting you know about compliance issues, allowing you to save drafts, make copies of your BOI info, and more.
How Can It Help?
BOIR software helps business owners in numerous ways, simplifying and streamlining the entire process of filling out your BOI report. Particularly for those who run multiple businesses, who have businesses with many beneficial owners, or somewhat complicated ownership structures, using BOIR can make everything much easier from start to finish.
Reasons to Use Reputable BOIR Software for FinCEN Filing in Maryland
Here are some of the key reasons to invest in trusted, proven BOIR apps when filing your BOI report in Maryland:
- Simplicity: As stated, the best BOIR apps make BOI reporting effortless. Filling out BOI reports is a little complicated, as it demands quite a lot of information that isn’t always the simplest to obtain. With an app on your side, you can get your report completed with far less fuss.
- Speed: Running a business is hard work. There’s a lot to do, and, often, it feels like there’s simply not enough time to get it all done. BOIR apps help you finish your BOI reports in half the time so you can get back to work or focus on other, more important matters.
- Convenience: As with so many other apps and business tech tools, BOIR programs are built with convenience in mind. They’re designed to make lives easier. Many apps, for example, let you save drafts to return to later or clone form data to use if you have multiple entities.
- Risk Mitigation: As explained, there are risks associated with late filing. You may also face penalties if you submit incorrect or out-of-date information on your BOI report. Using software helps to minimize risks, as it’ll check info as you enter it and alert you to any noticeable errors.
- Accuracy: Good apps have real-time validation and other accuracy checkers, so you know your report is 100% right. This also helps to reduce the risks of entering false info or facing any penalties for an incorrect or unreliable form.
What to Look For in Maryland BOIR Software
Clearly, it’s helpful to have trusty BOIR software on your side when filling out your BOI report. Here’s how to find and identify the right apps to work with:
Features
Arguably the biggest difference separating one BOIR app from another is its feature set. Some apps have quite a simple, small array of features, while others are more comprehensive. Think about your business situation, how you intend to fill out your report, how many reports you have to do, and other key factors to hone in on the key features you require. Useful features include:
- Cloning: Leading apps let you clone BOI data. As touched on earlier, this is helpful if you have multiple forms to fill out, as it saves you the time and hassle of having to re-enter the same info over and over.
- Importing: Good BIOR apps also let you import and export data to and from the platform. So, for example, you can prepare all your BOI data in the app and then export it straight onto the e-filing system.
- Validation: To ensure that your form is 100% accurate, some apps also offer real-time validation checks. They’ll monitor and verify the info you add to your form, checking that you don’t make any little errors or typos as you go.
- Drafts and Revisions: You may not have enough time to fill out all your BOIR info in one go. You might, instead, want to make drafts and revise them over time, adding more data as you collect it. This is something that the best BOIR apps will support.
- Autocomplete: Some apps also have autocomplete or auto-fill features. That means they’ll automatically enter certain bits of information, like your business name, for instance, on the forms once you’ve entered it the first time.
- Reminders: Finally, many leading BOIR apps have built-in notifications and reminders, keeping you informed and up-to-date with your BOI situation. This helps you avoid missing the deadlines and dealing with subsequent penalties.
Ease of Use
Above, we mentioned how the best BOIR apps are convenient and simplify reporting for busy business owners. So, it makes sense that you should find an app that’s intuitive and easy to work with, without any needlessly complex design elements, obtuse interfaces, or other frustrating features.
Pricing
BOIR apps aren’t usually free. You’ll have to pay either a license fee to work with one or even possibly a subscription fee to access the app when you need it. For smaller businesses with limited funds, it’s crucial to pick a program that doesn’t stretch your budget too far.
Complete Your BOI Report in Maryland With Leading Software
So, if your BOIR deadline is drawing nearer, don’t delay and don’t run the risks of fines or complications. Invest in some helpful BOIR software and get your BOI report filled out and submitted as soon as you can to protect the future of your Maryland company.
