Have You Done Your BOI Reporting for Your Small Business? Do These 3 Errands Next

Most small business owners who own an LLC or other legal business entity have to do a new federal filing requirement in 2024 called BOI (Beneficial Ownership Information). This type of reporting is almost as important as filing taxes -- don't ignore it, don't delay, and don't assume it doesn't apply to you.

The goal of BOI reporting is to help the U.S. Department of the Treasury detect and prevent financial crimes. The feds want to know who really benefits from each of these legal business entities -- law-abiding, tax-paying American small business owners, or shadowy networks of money launderers, oligarchs, terrorists, and drug lords? The point is: Do your BOI reporting. Start at the FinCEN website.

It doesn't take long to do your BOI report; mine only took about five minutes. The report doesn't ask for an extensive amount of information, and completing it is easier than filing your taxes! But when you do your BOI reporting, there are a few other business finance errands you might want to do around the same time.

Here are a few ideas for financial tasks and other tidying up of your business bookkeeping that you might want to do before or soon after your BOI reporting in 2024.

1. Double-check your business entity or LLC filing information

Especially if it's been a few years since you started your business, doing your BOI reporting is a good occasion to make sure all the information in your business filings is still accurate and up to date. Start by checking in with the secretary of state or business regulatory agency where you live.

Is your business mailing address and registered agent still correct? Are there any irrelevant old filings or outdated details that you need to correct? Get your ducks in a row with your secretary of state before you file your BOI report with the federal government.

2. Get a business savings account for cash reserves

Do you have extra cash sitting in your business checking account earning near-zero interest? Finishing your BOI report is a good occasion to move that money to an actual business savings account. The best business savings accounts are paying up to 4.00% APY!

You work hard for your money. You've taken risks and made sacrifices and poured blood, sweat, and tears into building this business. Your business's cash reserves deserve to earn interest. Don't settle for some big bank's 0.01% APY when you can get so much better than that.

3. Open a new business credit card if you need one

What if you could turn your everyday business expenses into a lower-cost vacation for your family? The best business credit cards can give you generous rewards (along with tax-deductible business expenses).

Applying for a new business credit card is totally unrelated to your BOI reporting requirements. But just like filing taxes can give people a moment of clarity on changes they want to make in their business (or personal) finances, filing a BOI report can be a good reminder to make positive changes in your business banking relationships.

Bottom line

If your company was founded prior to Jan. 1, 2024, then your BOI report must be submitted by the end of 2024! Don't delay, get it done. BOI reporting is fast and painless (faster than filing taxes). This new federal filing requirement can be a good occasion to tidy up your paperwork, bookkeeping, banking, and other aspects of your business finances.