Beneficial Ownership Information (BOI) Reporting
In 2021, Congress enacted the Corporate Transparency Act (CTA) to curb illicit financial operations, and the CTA has introduced Beneficial Ownership Information (BOI) reporting requirements. It mandates corporations, LLCs, and similar entities to report key information about their beneficial owners, defined as someone who either exercises substantial control over the company or owns at least 25% of its ownership interests. The information is reported to the Financial Crimes Enforcement Network (FinCEN) by filing a BOI Report online at https://boiefiling.fincen.gov/.
What do I have to report?
Entities must provide personal information about their beneficial owners, including:
Entity’s Full Legal Name (and any DBA)
Street Address of the Principal Place of Business (no P.O. Boxes)
State of Entity Formation
Tax ID Number
For each beneficial owner:
Legal Name
Date of Birth
Residence Address
Passport or Driver’s License Number and Issuing Authority
Copy of Passport of Driver’s License
When do I have to file the report?
Companies created or registered in 2024: You have 90 days from the date of formation to file your initial BOI report.
Companies established before 2024: You have until January 1, 2025, to file initial BOI reports.
Once a BOI Report is filed for an entity, an updated BOI Report is required whenever the information provided to FinCEN changes. So, a new BOI Report is required if a beneficial owner’s address changes, the legal entity changes names, or the business moves. Any updates or corrections to beneficial ownership information (new address, etc.) must be submitted within 30 days.
What if I do not file my BOI Report in the required timeframe?
There could be severe consequences.
According to the BOI Reporting Requirements, “the willful failure to report complete or updated beneficial ownership information to FinCEN…may result in civil or criminal penalties, including civil penalties of up to $591 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000.”
Will BBTB file this report for me?
Most CPA and accounting firms have taken the position that completing the BOI Report constitutes “legal advice,” so we cannot file this report on behalf of our clients.
BBTB will not send personal reminders or flag information that may trigger a change in BOI reporting. As a business owner, this reporting is your responsibility.
You can contact your attorney to assist you with BOI Reporting, or you can file it on your own.
What does BBTB recommend?
If you are unsure who your company’s beneficial owners may be, we recommend consulting with an attorney to assist with your BOI Reports.
We strongly recommend that you obtain a personalized FinCEN ID Number. This will significantly simplify the reporting process, and any changes to the required information can be easily updated by logging into FinCEN’s website.
To obtain your own FinCEN ID number:
Click on the link to Sign in or Create an Account with LOGIN.GOV.
Follow the steps to register for a LOGIN.GOV account.
Once you’ve created a LOGIN.GOV account, return to https://fincenid.fincen.gov/landing and click the link to Sign in or Create an Account with LOGIN.GOV again.
This will direct you to the login page for LOGIN.GOV.
Once you log in to LOGIN.GOV, you will be automatically directed to the online form to obtain your FinCEN ID number. Complete the form.
Once you have completed the form and hit submit, you will receive your FinCEN ID number.
Download the FinCEN ID number, save it in your records, and send a copy to your attorney
Additional Resources:
FinCEN has reported that there have been fraudulent attempts or scams to solicit information from individuals or businesses. Please be aware that these scams are popping up. FinCEN does not send unsolicited requests. If you have any questions about solicitations that you receive, please consult with your attorney.
If you have any questions or concerns, please contact BBTB Vice President Morgan Boudreaux at morganb@businessbythebook.money.
