Beneficial Ownership Information (BOI) Reporting: What Lawn Care and Landscaping Businesses Need to Know - due 1/13/25

If you own or operate a lawn care or landscaping business, you may have heard about the new Beneficial Ownership Information (BOI) reporting requirements. Introduced under the Corporate Transparency Act (CTA), these regulations aim to enhance transparency in business ownership and combat financial crimes like money laundering and tax evasion. Here’s what you need to know about BOI reporting and how it affects your business.

What is BOI Reporting?

BOI reporting is a federal requirement mandating certain entities to disclose information about individuals who own or control the company. This information is submitted to the Financial Crimes Enforcement Network (FinCEN) and includes:

1. Beneficial Owners: Individuals who own at least 25% of the business or exercise substantial control.
2. Company Applicants: Individuals who filed or registered the entity with the state.

This data helps the government identify and prevent illegal activities, but it also places a reporting obligation on businesses, including lawn care and landscaping companies.



Who Needs to Report?

Most small businesses, including LLCs, corporations, and partnerships in the lawn care and landscaping industry, fall under the BOI reporting requirements. Exemptions apply to publicly traded companies, certain nonprofits, and entities with over 20 full-time employees and $5 million in gross receipts that operate in the U.S.

If your lawn care or landscaping business is a small operation or newly registered, you’re likely required to report.



What Information is Required?

Your business must report:

• Business Information: Name, address, and Employer Identification Number (EIN).
• Beneficial Owner Information: Full name, date of birth, residential address, and an identifying document (e.g., driver’s license or passport).

Deadlines for Reporting

• Existing Businesses: Must file their BOI report by January 13, 2025.
• New Businesses: Must file within 30 days of registration starting January 1, 2024.
  
  

Why This Matters to Lawn Care and Landscaping Businesses

The lawn care and landscaping industry, often made up of small, family-owned operations, needs to pay close attention to these requirements to avoid penalties. Non-compliance can lead to fines up to $10,000 or imprisonment for up to two years.

Tips for Compliance

1. Identify Beneficial Owners: Determine who meets the ownership or control criteria in your business.
2. Gather Required Documents: Collect identification details for each beneficial owner.
3. File on Time: Ensure you meet the deadlines to avoid penalties.
4. Use Digital Tools: Platforms like Lawnager can help streamline your business operations, allowing you to focus on compliance.
5. Consult Professionals: Work with legal or tax advisors to ensure accurate reporting.

How Lawnager Can Help