It is often hard to keep up with all the requirements of running a business. You may not be aware of a new law that went into effect on January 1, 2024. Unless your business qualifies for an exemption, many companies in the United States must report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial owners are the individuals who ultimately own or control the company.

Fear not!  We recently reported our own business entity to FinCEN so we could help you better understand the process. Let’s get started!

How do I file a report?

  • Go to the BOI E-Filing System website and click “File BOIR.” Choose whether to file offline or online and follow the prompts. We chose to file online. It is really easy to file, but be sure to have your government-issued ID handy, as you will need to upload it. That’s all there is to it. 
  • Beneficial ownership information reporting is not an annual requirement. A report must only be submitted once unless the filer needs to update or correct information.

What is the purpose of BOI reporting?

  • Starting January 1, 2024, most United States (U.S.) entities must report information about the beneficial owners of their businesses to strengthen the integrity of the U.S. financial system by making it harder for illicit actors to use shell companies to launder their money or hide assets.

Under the Corporate Transparency Act (CTA), LLCs and corporations must file beneficial ownership information reports unless they qualify for an exemption. Effective Jan. 25, 2024, the penalties for BOI reporting violations and for the unauthorized disclosure or use of BOI have been increased to $591 a day from $500.

When do I need to file a report? 

  • Reports will be accepted starting on January 1, 2024.
  • Reporting companies created or registered to do business before January 1, 2024, will have additional time — until January 1, 2025 — to file their initial BOI reports.
  • Reporting companies created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving actual or public notice that their company’s creation or registration is effective to file their initial BOI reports.  Specifically, this 90-calendar day deadline runs from when the company receives actual notice that its creation or registration is effective or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
  • Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports.

Where can I find additional information about BOI reporting?

  • Additional information about the Reporting Rule and guidance materials are available here.
  • FinCEN has issued and will continue to issue frequently asked questions to address specific questions on the topic.
  • In addition, if you have any questions regarding BOI reporting obligations, you should contact FinCEN.
  • Watch this helpful video on YouTube.

We hope this helped!

 

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