By FileForms
Franchise owners are now grappling with a significant new federal compliance requirement: the Corporate Transparency Act (CTA). This legislation requires businesses to file Beneficial Ownership Information (BOI) reports with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
With the first major deadline of January 1, 2025, looming, franchisees must act swiftly to avoid penalties. For franchises, the challenge is compounded by their unique ownership structures, which can make BOI reporting particularly burdensome when using FinCEN’s government portal. Enter FileForms—a platform designed to alleviate this pain point by enabling franchise owners to leverage beneficial ownership data across all entities within their portfolio with just a few clicks.
What Franchise Owners Need to Know About the CTA
The CTA requires businesses to report detailed information about both their entities and their beneficial owners—individuals who own or control at least 25% of the company or exercise significant control over its operations.
What Franchises Must Report
- Entity Details: Legal name, trade name (if applicable), EIN, and principal business address.
- Beneficial Owner Information: Names, birthdates, residential addresses, and identification documents like driver’s licenses or passports.
Franchises operating as separate LLCs or corporations must file individual BOI reports for each legal entity, a task that becomes exponentially more complex for owners managing multiple locations or entities.
Unique Challenges for Franchise Owners
- Complex Ownership Structures
Franchise ownership often involves multiple stakeholders, investors, or holding companies. Identifying and reporting beneficial ownership across various entities can be time-consuming and error-prone.
- Pain Points in the Government Portal
The government’s BOI reporting portal requires businesses to submit information entity by entity, manually re-entering owner details for each one. For franchise portfolios with dozens—or even hundreds—of entities, this process can quickly become overwhelming.
- Penalties for Non-Compliance
Failure to file BOI reports accurately or on time can result in:
- Civil Penalties: $500 per day for delayed filings.
- Criminal Penalties: Fines of up to $10,000 and up to two years in prison.
Franchise owners need a solution that simplifies reporting, reduces administrative burdens, and ensures accuracy.
How FileForms Solves BOI Reporting for Franchises
FileForms is specifically designed to address the challenges of BOI reporting for franchise owners, offering a centralized, secure, and easy-to-use platform that eliminates the frustrations of manual data entry on FinCEN’s portal.
FileForms’ Franchise-Friendly Features:
- Leverage Beneficial Ownership Data Across All Entities
FileForms allows franchise owners to input beneficial owner details once and apply this information across all entities in their portfolio. With just a few clicks, owners can ensure accurate reporting for every location or business entity. - Centralized Dashboard for Multiple Entities
Franchisees can manage BOI filings for all their LLCs or corporations in one streamlined dashboard, providing an organized and efficient compliance process. - Direct Integration with FinCEN
FileForms seamlessly submits BOI reports to FinCEN, eliminating the need for repetitive data entry on the government portal. - Automated Compliance Alerts
Stay on top of deadlines with automated reminders for initial filings and updates triggered by ownership or entity changes. - SOC-II Certified Security
Your sensitive data is protected with enterprise-grade encryption, ensuring compliance and security at every step. - Guided Reporting Workflows
Easy-to-follow instructions make the filing process straightforward, even for franchise owners with limited experience in regulatory compliance. - Expert Support and Educational Resources
FileForms offers dedicated customer support and resources tailored to help franchise owners navigate BOI reporting with confidence.
How to Get Started with FileForms
- Audit Your Franchise Portfolio:
Use FileForms to identify which of your entities require BOI reporting. - Input Beneficial Ownership Data:
Enter owner details once and apply them across all entities in your portfolio with a few simple clicks. - Submit Initial Reports:
FileForms’ guided workflows ensure fast and accurate submissions to FinCEN. - Monitor and Update:
Leverage FileForms’ notifications to stay compliant with updates triggered by changes in ownership or other business events.
Why Franchisors Should Act Now
Franchisors can support their franchise networks by providing tools and guidance for CTA compliance. Partnering with FileForms ensures that franchisees have access to a proven solution, reducing the risk of errors and penalties across the network. This proactive approach also reinforces trust and operational excellence, positioning the franchise brand as a leader in regulatory compliance.
The Time to Act Is Now
The January 1, 2025 deadline is fast approaching. For franchise owners managing multiple entities, compliance with the CTA can feel like an uphill battle—but it doesn’t have to be.
With FileForms, franchisees can simplify BOI reporting, reduce administrative burdens, and ensure accuracy and compliance. By leveraging beneficial ownership data across all entities with a few clicks, FileForms eliminates the headaches of manual reporting, saving franchise owners time and money.
Visit FileForms.com to learn more about our secure, franchise-friendly BOI reporting solution. Don’t wait—act now to protect your business and ensure compliance.