The Beneficial Ownership Information (BOI) is a required report companies must file to the Financial Crimes Enforcement Network detailing who owns and benefits from an LLC or Corporation. The purpose of the reporting requirement is to make it more difficult for bad actors to getaway with illegal or improper gains through shell companies or other questionable ownership arrangements. It will provide the U.S. government within formation that can potentially help it enhance national security and protect financial systems from criminals who traffic drugs, commit fraud, launder money, and engage in other illicit activities. If your business started before January 1^st, 2024 you must file a BOI report by January 1^st, 2025. If your company was created after January 1^st, 2024 you have 90 calendar days to file after you receive a notice that your company has been successfully created or registered.

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Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?

The Corporate Transparency Act (CTA), enacted in 2021 to address illegal financial behavior ,requires companies in the USA to report information regarding who owns or controls them. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network has begun to accept beneficial ownership information reports. Filing is free, simple, and secure.

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What is the meaning of beneficial ownership?

Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.

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Are LLCs required to submit a Beneficial Ownership Information (BOI) Report?

Yes, LLCs are required to complete a BOI because they meet the definition of a ‘reporting company’ by the Corporate Transparency Act. Therefore, all LLCs in the USA will be required to file a BOI report.

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Where to File

You can file online by going to FinCEN’s BOI E-filing website.

https://boiefiling.fincen.gov/

When do I need to report my company’s beneficial ownership information to FinCEN?

·        Existing Companies: companies created or registered to do business in the United States before January1, 2024 must file by January 1, 2025.

·        Newly created companies: companies created or registered to do business in the United States in 2024 have 90calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

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Who is a beneficial owner of my company?

A beneficial owner is any individual who, directly or indirectly:

·        Exercises substantial control over a reporting company.

OR

·        Owns or controls at least 25 percent of the ownership interests of a reporting company.

What is a Company Applicant

A company applicant is the individual who directly files the document that creates the domestic reporting company and the individual who is primarily responsible for directing or controlling the filing if more than one individual is involved in the filing of the document.

Am I required to report company applicants?

Only reporting companies created or registered on or after January 1, 2024,will need to report their company applicants.

A reporting company does not have to report its company applicants if it is either a:

• Domestic reporting company created in the United States before January 1, 2024; or
• Foreign reporting company first registered to do business in the United States before January 1, 2024.

Is a Beneficial Ownership Information Report an annual requirement?

Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. 

What information do I need to file my report?

Generally, reporting companies must provide four pieces of information about each beneficial owner:

• Name;
• Date of birth;
• Address;
• and the identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired   identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted. 

Find a more detailed overview of Beneficial Ownership Information Requirements here.

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