What is Beneficial Ownership (BOI) Reporting?

We wanted to provide more information about an important new reporting requirement that may impact your business: Beneficial Ownership Information (BOI) Reporting. This requirement, introduced under the Corporation Transparency Act (CTA), mandates that certain entities report details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).

Below, we’ve provided more information and links to more information about the report.

What is BOI Reporting?

BOI Reporting requires the disclosure of information about individuals who own or control at least 25% of a company, either directly or indirectly. The purpose of this requirement is to increase transparency in business ownership and help combat financial crimes, such as money laundering and fraud.

Entities required to file BOI reports include corporations, limited liability companies (LLCs), and other similar entities created or registered in the U.S. Some exemptions apply (see the FinCEN FAQ link below for more details).

When does this need to be filed?

  • For entities existing before January 1, 2024, the BOI report must be filed by January 1, 2025.
  • For entities created or registered on or after January 1, 2024, the report is due within 90 days after formation.

How to file your BOI report

Please note that our firm is not preparing or filing BOI reports on behalf of clients.

Filing your BOI report should generally be straightforward and can be submitted electronically to FinCEN. The required information includes:

  1. Identifying information about the reporting company (name, address, etc.).
  2. Beneficial Owners’ Details, such as:
    • Full legal name
    • Date of birth
    • Address
    • An identification number from an acceptable document (passport or driver’s license).

You may file the report directly through FinCEN at no cost or use one of many third-party services available. We’ve provided links to the FinCEN website and a recommended third-party service.

File BOI Report Through FinCEN

File BOI Report Through BOI Management

Penalties for Non-Compliance

Failure to comply with BOI reporting requirements can result in significant penalties, including:

  • Civil Penalties: Up to $500 per day for non-compliance.
  • Criminal Penalties: Fines up to $10,000 and possible imprisonment for up to two years for willful failure to report.

FinCEN has developed a set of FAQs to help businesses file these reports.

Access FinCEN BOI FAQs

Feel free to reach out to us with any questions!

Nick Fair, CPA