Filing BOI reports for multiple entities can be a hassle, especially when you repeatedly enter the same details for each beneficial owner and applicant. A FinCEN ID makes this process easier by letting you use a unique identifying number instead of re-entering personal information every time.

But you might be wondering:

• Do I really need it?
• How does it help with compliance?

In this article, we’ll explain everything you need to know about FinCEN ID—what it is, why it’s useful, and how to get one. Let’s get started!

What is a FinCEN ID?

A FinCEN identifier (aka FinCEN ID) is a unique 12-digit number given to individuals or business entities by the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of the Treasury.

You’ll mostly come across a FinCEN ID when dealing with the Corporate Transparency Act. This law requires certain businesses—whether U.S.-based or international companies registered in the U.S. — to share beneficial ownership information with FinCEN by submitting a Beneficial Ownership Information Report.

FinCEN uses the data you’ve already provided when you obtain a FinCEN Identifier to make the BOI reporting requirement smoother and faster. This simplifies reporting, reduces errors, and eliminates the need to share personal information repeatedly.

Advantages of Having a FinCEN ID

A FinCEN ID can save you time and provide extra security, especially if you’re filing BOI reports for multiple companies.

1. Simplifies Reporting:
   Instead of entering your personal details—like name, address, or ID—every time you file, you just use the ID number.
   
   
2. Protects Your Privacy:
   You only share sensitive information once when you request a FinCEN identifier. After that, you can avoid repeatedly exposing personal details like your driver’s license or passport.
   
   
3. Useful for Professionals:
   It is especially helpful if you’re an attorney or someone who regularly files reports for multiple companies. For example, instead of sharing your personal details as a company applicant, you can use your ID to keep the process simple and secure when filing beneficial ownership information for your clients.
   

In short, FinCEN ID saves effort, reduces errors, and helps protect sensitive information while ensuring smooth reporting to FinCEN.

Who Should Consider Getting a FinCEN ID?

While a FinCEN ID isn’t mandatory, it can be a valuable tool for individuals and businesses involved in BOI reporting, especially in cases of batch filing. Here’s who should consider getting one:

Company Applicants: It can simplify the process if you’re responsible for forming companies or filing registration paperwork, such as attorneys or consultants. Instead of repeatedly sharing personal details like your address or ID, you can use your FinCEN ID for secure and efficient submissions.

Frequent Filers Handling Batch Filing: Individuals managing BOI reporting for multiple entities—whether as attorneys, business consultants, or owners of multiple companies—can benefit greatly from a FinCEN ID. It reduces the need to re-enter the same information for every filing, saving time and minimising errors.

Reporting Companies with Complex Ownership Structures: Businesses required to file BOI reports can streamline disclosures using FinCEN IDs, especially when ownership involves other entities.

However, this is allowed only if:

• The other entity provides its FinCEN ID.
  
• The beneficial owners hold their interests through the other entity.
  
• The beneficial owners are the same for the reporting company and the other entity.
  

Note: Once issued, your FinCEN ID is permanent—you cannot change or obtain a new one. So, make sure to use the same ID for all your reports. For example, if you’re a beneficial owner and a company applicant, you’ll use the same FinCEN ID for both roles.

How to Get your FinCEN ID?

For Individuals (Beneficial Owners or Company Applicants)

You can request a FinCEN ID by visiting the official FinCEN platform, creating an account, and completing the application form with your details. You’ll need to provide:

• Full legal name
  
• Date of birth (for individuals)
  
• Address (residential or business)
  
• An image of an ID document (e.g., driver’s license or passport)
  

Once you submit the form, your unique FinCEN ID will be issued immediately. After receiving your ID, you can use it to file your Beneficial Ownership Information (BOI) report.

For Reporting Companies

If you are a reporting company, you can request an entity-specific FinCEN ID by selecting the appropriate option while filing your initial BOI report. If you don’t request it during the initial filing, you can still obtain it later by submitting an updated BOI report, even if no other updates are needed.

Updating Your FinCEN ID

For Individuals

If you need to update your personal details (e.g., address or name), you must follow the same process as the initial application. This involves submitting a revised application through the FinCEN portal with the corrected or updated information.

• You are required to update or correct your details within 30 calendar days of any change or upon realising an error.
  

For Reporting Companies

Reporting companies must file an updated or corrected BOI report if any details change. If a FinCEN ID is already in use, the update process remains simple, as it references the existing ID and provides new information.

Note: Both individuals and the reporting company must update the FinCEN identifier application within 30 calendar days if any of the personal information you provided changes.

Conclusion

A FinCEN ID is valuable for individuals and businesses involved in the Corporate Transparency Act and beneficial ownership reporting. It simplifies the reporting process, enhances privacy, and reduces the risk of exposing sensitive information.

While not mandatory for everyone, obtaining a FinCEN ID is an efficient and secure way to comply with financial transparency regulations and streamline your reporting responsibilities.