Plumbers! You’re probably wondering if you need to file the BOI report, and you’re not alone. The Beneficial Ownership Information report is a new requirement that almost all businesses, including plumbing companies and self-employed plumbers, must comply with. As if filing taxes and renewing your business entity each year weren’t enough! Don’t worry though, we’ve got you covered. Read on to learn:

• what the BOI report is
• key deadlines for filing
• penalties for non-compliance
• which plumbing businesses need to file
• tips for navigating the reporting process

Understanding the BOI Report

For plumbers running their own businesses, understanding the specifics of the BOI report is essential!

The BOI (Beneficial Ownership Information) report is a compliance document required by the Financial Crimes Enforcement Network (FinCEN). Its main purpose is to gather personal information about the beneficial owners of a business entity to increase transparency and prevent financial crimes like money laundering. For plumbers, a beneficial owner is anyone who directly or indirectly owns at least 25% of the company OR has substantial control over its decisions and operations.

Filing the BOI report involves disclosing detailed information about these beneficial owners, such as their name, address, date of birth, and an identifying number from an acceptable document like a passport or driver’s license. This process not only supports national and international efforts to combat financial crimes but also ensures your plumbing business complies with legal standards, maintaining transparency and credibility.

Key Deadlines for Filing Your BOI Report

Knowing the deadlines for BOI reporting submission is key to avoid the steep penalties associated with it. When was your business formed? If it was established prior to 2024, you have until December 31, 2024. Plumbing businesses formed in 2024 have 90 days from the date of formation to file the report. Once the initial BOI report is filed, you’ll need to keep track of BOI changes within your company. When there is a significant change in beneficial ownership, such as a name or address change, a substantial change in equity distribution, or the addition of a new partner with significant control, you’ll need to submit an updated BOI report within 30 days of the change.

Consequences of Non-Compliance: Penalties for Plumbing Businesses

Failing to file the BOI report can lead to severe penalties for plumbers and plumbing companies. FinCEN is fining non-compliant businesses over $500 a day, and that figure is being adjusted for inflation! Legal actions may also be taken, which means expensive legal fees and damage to the business’s reputation.

Make sure you know when your BOI report is due and you file it in time!

Which Plumbing Businesses Need to File a BOI Report?

All plumbing businesses, including partnerships, limited liability companies (LLCs), and corporations, need to file the BOI report with very few exceptions. If you happen to be a beneficial owner of a major plumbing operation with over 20 employees and $5 million in annual revenue then you don’t have to file.

Consulting a compliance specialist or legal advisor can provide clarity and guidance specific to your business and bring you peace of mind. Give us a call and we’ll help you navigate through this so you can stay out of hot water with FinCEN!