BOI REPORT FAQ
BOI Report Frequently Asked Questions
In 2021, Congress enacted the bipartisan Corporate Transparency Act to curb illicit finance. This law requires many companies doing business in the United States to report information about who ultimately owns or controls them.
So, effective January 1, 2024, many companies in the United States must report information about their beneficial owners—the individuals who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasur.
A beneficial owner is an individual who directly or indirectly: (1) owns or controls at least 25% of your company’s ownership interests, or (2) exercises substantial control over your business. If you’re not sure, contact us and speak to one of our agents.
Your company may need to report information about its beneficial owners if it is:
1. A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
2. A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
You can file in two ways: File your own report online or hire BOIRS to file for you.
BOIRS filing services involve:
- Reviewing Reporting company information
- Reviewing Beneficial Owner information
- Filing the initial report
- Requesting FinCEN ID for Reporting company and/or Beneficial Owner
- Handling updates after initial filing
- Completing the attestation page of the report
- Emailing a copy of the report to Beneficial Owners
- Handling all FinCEN inquiries related to the report
Any changes to the owners or controlling members of a business, or their identifying information, require updated beneficial ownership information reporting. For example, an updated BOIR is required when a controlling member is a minor and reaches an age of majority. Another example is if a company becomes tax exempt.
Additionally, an updated BOIR is also required if initially reported information is incorrect or if entities make certain amendments. Businesses have 30 days from the date of the change or amendment to file an updated BOIR.
- Entities formed on or after February 18, 2025 will have 30 days to file their initial BOI report.
- Entities formed before February 18, 2025 will need to file by March 21, 2025.
- Reporting companies that were previously given a reporting deadline later than the March 21, 2025 deadline must file their initial BOI report by that later deadline. If any of the information on the report changes, the entity will have 30 days to submit a new report.
Filing your BOI report will help you avoid criminal and civil penalties which include:
1. Up to 2 years of imprisonment
2. Fines of up to $590 per day and
3. Up to a maximum fine of $10,000
The Corporate Transparency Act is legislation that changes the reporting requirements for beneficial ownership information of business owners operating in the United States. It requires businesses to identify and document any person who holds a 25% or greater ownership interest or exercises substantial control over the company.
Under the Corporate Transparency Act, most reporting companies may file information on each beneficial owner with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN has developed a database that holds information about each beneficial owner documented by a reporting company.
Twenty-three types of entities are exempt from beneficial ownership information reporting requirements, including publicly traded companies, nonprofits, and certain large operating companies.
A beneficial owner is required to provide the following information:
- Legal name
- Date of birth
- Address
- Photo ID like passport or driver’s license. A copy of the ID must be uploaded on the FinCEN’s online portal
