Need assistance with filing your FinCEN Beneficial Ownership Information Report?
Well, you're in the right place–keep reading!
On September 30, 2022, FinCEN issued the final rule establishing BOI reporting requirements (the Reporting Rule), which came into effect on January 1, 2024 in compliance with the Corporate Transparency Act.
The Reporting Rule requires certain entities (reporting companies) to report to FinCEN information about themselves, as well as information about two categories of individuals: (1) the beneficial owners of the reporting company; and (2) the company applicants.
If you're a business owner needing help filing this mandatory information, join our live workshop or book a filing service now!
FinCEN BOI FAQs
Who is required to file a BOI report?
The BOI filing requirement applies to most corporations, limited liability companies (LLCs), and similar entities created or registered to do business in the United States. Exceptions exist, such as publicly traded companies and certain exempt entities, but the majority of small businesses and privately held companies must comply.
What is the deadline for filing?
For entities created or registered on or after January 1, 2024, the BOI report must be filed within 30 calendar days of registration. Entities that existed before January 1, 2024, must submit their BOI report by January 1, 2025. Failing to meet these deadlines can trigger penalties.
What information is required for the report?
The BOI report must include:
Company Information: Legal name, trade name (if applicable), address, and Employer Identification Number (EIN).
Beneficial Owner Information: For each beneficial owner (those owning at least 25% of the company or exercising significant control), you must provide their:
Full legal name.
Date of birth.
Residential address.
A copy of an identification document, such as a passport or driver’s license, including the document number and issuing authority.
What is the purpose of the BOI requirement?
The BOI filing requirement is part of the Corporate Transparency Act (CTA), designed to enhance transparency in U.S. business operations. By requiring companies to disclose their beneficial ownership information, the government can combat illicit financial activities like money laundering, terrorism financing, and tax evasion.
What are the penalties for incorrect or incomplete filings?
Filing incorrect, incomplete, or outdated BOI information can result in significant fines and legal consequences. Penalties include civil fines of up to $500 per day for continued violations and, in severe cases, criminal fines of up to $10,000 or imprisonment for up to two years. It’s crucial to ensure all information is accurate and up to date.
Can someone else file the BOI report for me?
Yes, you can authorize a trusted attorney, accountant, or compliance consultant to file your BOI report. Having a professional handle your filing ensures the information is complete and accurate, helping you avoid penalties. Be sure to provide all required documents and information to your representative.
What are the exemptions to the BOI filing requirements?
Not all entities are required to file a BOI report. Exemptions include:
Large operating companies with at least 20 full-time employees and $5 million in gross receipts in the U.S.
Publicly traded companies.
Certain government entities, banks, credit unions, tax-exempt entities, and subsidiaries of exempt entities.
Sole proprietors with no Secretary of State filings
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