What is Beneficial Ownership Information (BOI) Report?

The Beneficial Ownership Information (BOI) Report is a new filing requirement under the Corporate Transparency Act from FinCEN (Financial Crimes Enforcement Network). By January 1, 2025, around 32.6 million small businesses must submit their BOI reports.

This filing will help FinCEN and other government agencies gather clear information about who owns or controls the company.

BOI Report is designed to promote transparency and prevent businesses from being misused for activities like money laundering or tax evasion. Knowing the beneficial owners of companies is essential for national authorities to effectively monitor and regulate corporate ownership under the Corporate Transparency Act.

Who is the Beneficial Owner?

A beneficial owner is an individual who directly or indirectly

• Have substantial control over a reporting company,
• Own or control at least 25% of the company’s ownership interest

These individuals (“Beneficial owners”) have the power to make important decisions about how the company operates and how profits are distributed. This includes:

• Serving as senior leaders (e.g., president, CFO)
• Having the authority to hire or fire other company leaders and
• Contributing to decisions on strategies, budgets, and other key matters.

Who has to file a Beneficial Ownership Report?

Two types of business entities need to file the Beneficial Ownership Information with FinCEN unless they’re exempt:

1. Domestic Companies: This includes United States businesses like corporations, LLCs, partnerships, business trusts, or any other company officially created by filing paperwork with a Department of State.
2. Foreign Companies: These are companies formed outside the U.S. (like foreign corporations or LLCs) and registered to do business in the U.S. by filing documents with a Department of State.

While many businesses are required to file BOI report, FinCEN has outlined 23 specific exemptions for certain entities, such as publically traded companies, government authorities, and specific large operating companies. If you’re uncertain whether your business qualifies for a cta exemption, you can review the full list of exempt entities in the table below:

If you still have questions, you can check with our tool: Do you need to file a BOI Report? This will ask a couple of questions and help you know if you’re required to report.

How to file a BOI Report?

If you’re a small business entity with 20 or fewer full-time employees and aren’t exempt, you must file a BOI Report by January 1, 2025. BOI filing is required by FinCEN, and missing the deadline could result in fines.

Here are your options for filing:

• FinCEN’s BOI E-filing Portal: Visit the official FinCEN e-filing portal to submit your BOI report. You’ll need to provide key details, such as:

1. Names and addresses of those who own or control your business.
2. Identification number (ID) numbers from documents like passports, driver’s licenses or any other legal document.
3. Information on ownership percentages or who makes key decisions.

  It’s pretty straightforward if you have everything prepared.

• Using ComplyCTA: To make the process quicker and easier, you can use ComplyCTA BOIR Filing Software. With our platform, you can file your BOI report in less than 5 minutes. We’ll handle the details and ensure everything is accurate and compliant, so you don’t have to worry about making mistakes.
  

Here’s the guide to help you file your BOI Report using ComplyCTA

Why Filing Your BOI Report is Important?

Filing your BOI report ensures compliance with FinCEN’s regulations. If you don’t file by the deadline, you could face fines of up to $500 per day. In serious cases, the penalties could reach $10,000 or even include imprisonment for up to 2 years.

It’s better to file early and avoid any issues—whether you go through FinCEN’s portal or use ComplyCTA.

BOI Reporting Requirements

A reporting company have to provide the following details:

1. Full Legal Name
2. Any trade names, including “doing business as” (d/b/a) or “trading as” (t/a) names;
3. The current U.S. address of the company’s main office or, for foreign companies, the U.S. address where business is conducted.
4. The jurisdiction where the company was formed or registered
5. Its Taxpayer Identification Number (TIN), or if it’s a foreign company without a TIN, a tax ID issued by another country along with the name of that country.

Note: The reporting company must also specify whether it is filing an initial report, a correction, or an update to a previous report.

Beneficial Owner needs to provide the following details,

1. Full Name
2. Date of Birth
3. Residential Address
4. Passport or Driving License Identification Number and the name of the issuing state or jurisdiction

Note: If there is more than 1 Beneficial owner, each should provide the above details while filing the BOI Report.

When does the company’s BOI report need to be submitted to FinCEN?

The deadline for submitting your BOI Report depends on when your company was created or registered. Refer to the table below for the applicable deadlines based on your company’s formation date.

Don’t wait until the deadline approaches. File your BOI Report with ComplyCTA today to ensure your business stays compliant and avoids any last-minute stress or civil and criminal penalties. We’ll take care of the details so you can focus on running your business.

Frequently Asked Questions

1. Who needs to file a BOI form?

Most U.S. businesses, including corporations, LLCs, and partnerships, are required to file a BOI form. Exceptions include publicly traded companies and large businesses with over 20 employees and more than $5 million in annual revenue.

2. Is there a fee for submitting a beneficial ownership information report to FinCEN?

No. There is no fee for submitting your beneficial ownership information report to FinCEN. However, you may be charged if you file your BOI report using BOI reporting software.

3. What is the meaning of BOI?

BOI stands for Beneficial Ownership Information. FinCEN introduced it on January 1, 2024, to collect ownership information from small businesses and LLCs. This helps enforce anti-money laundering laws and prevent tax evasion by keeping clear records of who owns or controls these companies.

4. What is the penalty for not filing a BOI report?

The penalty for not filing the BOI report can include civil penalties of up to $500 per day for each day the violation continues, and in some cases, criminal penalties may apply, including fines up to $10,000 and/or imprisonment for up to 2 years.

5. Do we need to update the BOI Report?

Yeah, your BOI report has to remain up-to-date. If any changes occur to new beneficial owners or changes in the previously reported information, then you must file a new BOI report within 30 days.