Independent Truckers Need to Report Beneficial Ownership Information (BOI)

Truckers Need to Report Beneficial Ownership Information

The Financial Crimes Enforcement Network’s (or FinCEN’s) new requirements for beneficial ownership information reporting places new obligations on most small business owners. If you are just beginning your journey in navigating the new reporting requirements, you are not alone. Millions of small business owners are discerning whether or not they must report on beneficial ownership, the deadline for doing so, and what information needs to be reported. For many of these business owners, there are overlapping concerns of privacy as well. Who will have access to reported information other than the Department of the Treasury? Let us consider a hypothetical business owner as an easy example, Tom the trucker.

Tom began his trucking career in 2011 and has been an owner/operator for long haul freight for a while now. In 2017 after he has paid off his tractor trailer lease to own, he formed his own LLC and hired himself out as the sole employee and member of the LLC. Tom has read through the reporting requirements detailing which companies are required to make a report. As Tom’s business is an LLC which was registered through the Secretary of State’s office, his business reaches the threshold of a reporting company per the rule. Since he is the sole member of his LLC, Tom also fits the criteria as a beneficial owner. He has also read about the penalties: up to two years in prison and a $10,000 fine with a civil penalty of a $500 fine per day he fails to register.

Now comes another sticky point. How does Tom make his report? If some of the information he has reported changed, does he need to update his report? What deadlines apply for reporting mistakes or changes? Does he need to register a FINCEN number for himself or his business? Does both the beneficial owner and the business need to make separate reports?

With stakes this high and the guidelines so broad and vague, it makes sense to speak to an experienced business law attorney to avoid the penalties of failing to report or filing a deficient report.

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About Ryan Bell

Ryan Bell is an Associate Attorney with Law 4 Small Business (L4SB), and whose legal career has focused on personal injury defense and creditor’s rights. Ryan has extensive litigation experience which he now brings to the business law context and he has been noted for his skills in dispute resolution.

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