BOI Reporting for Trucking Companies

May 9, 2024

BOI Reporting for Trucking Companies

Behind-the-scene of every operating trucking company is a web of regulations and paperwork. For truck drivers, staying compliant is not only a legal requirement but a major component in ensuring that their company is running efficiently so they can stay on the road. One new aspect for companies to understand is Beneficial Ownership Information (BOI) reporting.

Let’s discuss why it’s important and how you can navigate it effectively.

Understanding BOI Reporting

Beneficial Ownership Information (BOI) reporting is a requirement for individuals or entities to disclose the ‘true ownership’ of a business — it is also known as the Corporate Transparency Act (CTA). The CTA was enacted by Congress as part of their efforts to combat terrorism, organized crime, and money-laundering. As of January 1, 2024, all new entities registered in 2024 must file the BOI within 90 days.

Penalties for willfully not complying with the BOI reporting requirement can result in criminal and civil penalties of $500 per day and up to $10,000 with up to two years of jail time.

Why BOI Reporting Matters for Truck Companies

Here’s the deal, the law casts a wide net that includes many trucking companies— whether it’s up and running or still in the ‘pipeline’. Not reporting or inaccurate reporting or tardy reporting can get you in hot water with penalties.

Beneficial Ownership is a new tool in ensuring transparency and accountability. By disclosing true owners, regulators can accurately track and monitor activity to prevent fraud, tax evasion, and other illegal actions.

Who needs to report?

All entities operating under an LLC must file a Beneficial Ownership Information report. If you are a sole-proprietorship you do not need to file.

When do you need to report?

New entities (created/registered in 2024) — must file within 90 days
New entities (created/registered after 12/31/2024) — must file within 30 days
Existing entities (created/registered before 1/1/24) — must file by January 1, 2025
Reporting companies that have changes to previously reported information or discover inaccuracies in previously filed reports — must file within 30 days

Practical Implication

While this reporting update might make you wary, there are practical implications for companies. For example:

Transparency in ownership structure may show a company’s trustworthiness and stability helping you make better decisions on which companies to work with.

iThrive’s Free Credit Check can also help with a company’s stability.

How Truck Companies Can Ensure Compliance

Stay Informed: Regulatory agencies such as Motor Carrier HQ, issues guidance and updates that affect reporting obligations.
Know Your Company: As an owner-operator, ensure that your Beneficial Ownership Information is accurately documented and reported. Motor Carrier HQ can assist you with your BOI.
Ask Questions: Don’t hesitate to ask questions regarding BOI’s when entering into contracts or partnerships.
Document Everything: Maintain thorough records of your company’s dealings. Including by not limited to invoices, contracts, and anything related to Beneficial Owner Information.
Seek Professional Assistance: If you’re unsure about your reporting obligations, or how to comply with BOI requirements, contact Motor Carrier HQ here.

The Benefits of Compliance

Enhanced Reputation: Advocating for transparency and compliance can increase your reputation within trucking, potentially leading to more relationships and work opportunities.
Reduced Risk: Keeping a high-level of transparency and following the regulations of BOI requirements, you reduce the risk of fines, penalties, or legal repercussions for non-compliance.

Warning of Scammers

There is absolutely NO FEE to file your BOI, but be prepared to start receiving emails and calls from every Tom, Dick and Harry requesting money to file your BOI for you.

You can file your BOI here or Motor Carrier HQ can help you here.

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