What is a Beneficial Ownership Information (BOI) Report?

 

A Beneficial Ownership Information (BOI) Report is a document that must be filed with the federal Financial Crimes Enforcement Network (FinCEN) starting January 1, 2024. Mandated as part of the Corporate Transparency Act (CTA), BOI reports provide FinCEN with basic information about your business and those with the most influence over business operations and income, known as beneficial owners.

The purpose of BOI reporting is to help government agencies and banking institutions more effectively fight and reduce financial crimes like fraud and money laundering. However, you can rest assured that the information disclosed in your report will only be made available to authorized parties—BOI reports do not go on the public record.

We can file your BOI report for you for a modest fee of $25. 

Do I Need to File a BOI Report?

Most business entities formed by filing formation paperwork with a state agency are required to submit a beneficial ownership information report, as are foreign businesses registered to operate in the US . This includes both foreign and domestic:

Informal business structures that aren’t formed by filing with the state—sole proprietorships and, in most states, general partnerships—are not required to file.

What are the BOI filing exemptions? 

The CTA identifies 23 exemptions to BOI filing. Exempt company types include:

    • Most non-profit corporations
    • Large operating companies with 20+ full-time employees and over $ 5 million in gross receipts or sales for the previous year
    • Inactive entities that have not engaged in business and have not sent or received over $1,000 to any other entity in the past 12 months
    • Public utility companies
    • Government authorities
    • Banks and credit unions
    • Insurance companies
    • Accounting firms
    • Investment companies and brokers or dealers

 

How Do I File My BOI Report? 

BOI reports must be filed online using the FinCEN database, the Beneficial Ownership Secure System (BOSS), beginning on January 1, 2024.

What are the filing deadlines? 

  • Within 90 days of formation: companies created anytime in 2024
  • Within 30 days of formation: companies created on or after January 1, 2025
  • By January 1, 2025: companies created before January 1, 2024

How much does filing cost? 

Filing your BOI report with FinCEN is free.

 

What Information goes on the BOI Report? 

You must share basic details about your company and the individuals who benefit the most financially from business operations or have the most power over how your business runs. There are three key reporting areas: reporting company, beneficial owner, and company applicant. You can provide this information directly or use a FinCEN identifier.

What’s a reporting company?

Your business is the reporting company. You’ll need to list the following information about your reporting company:

  • Legal business name
  • Any DBAs
  • Principal business address in the US (must be a street address)
  • Jurisdiction of formation
  • Federal taxpayer ID (SSN, EIN, or TIN)

Who’s a beneficial owner?

A beneficial owner is anyone who owns 25% or more of your company or who exercises substantial control over business decisions, such as an LLC member-manager or a corporate officer. For each beneficial owner, you’ll need to provide:

  • Full legal name
  • Birth date
  • Residential address
  • Copy of ID (like a passport or driver’s license)

NOTE: If a beneficial owner is another business (for example, if your LLC is owned by another LLC), you’ll need to give the information about the individual owners of that business. If a beneficial owner is a minor, you must list the information for that minor’s legal guardian.

Who’s a company applicant?

A company applicant is any individual responsible for filing formation documents. This includes the person who actually filed the documents and anyone who directed them to be filed. Like beneficial owners, company applicants must provide:

  • Full legal name
  • Birth date
  • Residential address
  • Copy of ID (like a passport or driver’s license)

NOTE: Companies formed prior to 2024 don’t need to disclose company applicant information.

What’s a FinCEN identifier? 

Instead of listing all of your company or individual information on your BOI report, you can get a FinCEN identifier, which is a number that identifies you or your company. Having a FinCEN identifier can be convenient if you have to list your information on multiple BOI reports.

You can apply for a FinCEN identifier online through FinCEN. Businesses will need to disclose the same information as a reporting company, and individuals will need to share the same information as a beneficial owner or company applicant.

 

What are the Penalties for not Filing? 

You can face steep penalties if you don’t file or knowingly provide false information on your BOI report. The CTA states that violators could be fined up to $500 per day (up to $10,000) and face up to 2 years of jail time.

What if I need to update my report?

If you need to update or fix any information on your report, you can do so online through FinCEN. There’s no cost to update your report, but you must submit your update within 30 days of the date your information changed to avoid penalties.