Beneficial Ownership Information (BOI)
Under the Corporate Transparency Act (CTA), FinCEN requires most small businesses to report their Beneficial Ownership Information (BOI) starting January 1, 2024. This law was passed to improve financial transparency and eliminate money laundering and other similar crimes.
Generally, the following companies are required to complete BOI reporting:
Domestic Entities - Any domestic business that operates under U.S. tax laws. This includes corporations, LLCs, limited partnerships, and limited liability partnerships (LLPs).
Foreign Entities - Any entities that are established outside the United States and conduct business in the U.S.
The deadline to file a BOI report is based on your company's establishment date.
Existing reporting companies created or registered before January 1, 2024, must file their BOI reports by January 1, 2025.
Companies created or registered to do business in the United States on or after January 1, 2024, must file their BOI reports within 90 calendar days.
Companies created or registered to do business in the United States on or after January 1, 2025, must file their BOI reports within 30 calendar days.
According to FinCEN, any individual or a group of individuals who has substantial control over the reported company or has at least 25% of the ownership interests of the reported company directly or indirectly. Click here to know more about the beneficial owner(s) of a company.
According to the FinCEN rule specified in the Corporate Transparency Act, anyone who fails to comply with the BOI reporting requirements will be subjected to civil penalties of up to $591/day. Furthermore, there can be criminal penalties of up to two years imprisonment and a fine amount of up to $10,000.
Click here to learn more about BOI filing requirements.