Understanding the New Beneficial Ownership Information (BOI) Requirements

Posted on October 24th, 2024

As of January 2024, businesses across the U.S. are required to comply with the new Beneficial Ownership Information (BOI) filing under the Corporate Transparency Act. This legislation is designed to increase transparency in company ownership and help combat financial crimes.

If you own or manage a corporation, LLC, or a similar entity, this new requirement likely affects you.

What Is the BOI Requirement?

The BOI filing requires businesses to report information about their beneficial owners—any individual who directly or indirectly owns or controls 25% or more of the company. You will also need to report the person who applied to form the company.

The required information includes:

• Full Name
• Date of Birth
• Current Address
• Identification Number (from a valid government-issued document like a passport or driver’s license)

Who Needs to File?

Most privately-owned corporations, LLCs, and similar entities will need to comply. However, certain entities such as publicly traded companies, banks, and government agencies are exempt. If you’re unsure whether your business is affected, now is the time to check.

Key Deadlines

• For companies formed on or before January 1, 2024: The initial filing must be completed by January 1, 2025.
• For companies formed after January 1, 2024: You must file within 30 days of formation.

How to File

BOI reports must be submitted to the Financial Crimes Enforcement Network (FinCEN) through their secure online system. It’s a quick and straightforward process, and all information will be kept confidential.

You can access the FinCEN BOI filing system here: BOI Filing with FinCEN .

Penalties for Non-Compliance

Failing to file or submitting inaccurate information can result in fines and criminal penalties. It's essential to ensure that your filing is accurate and submitted on time.

Ongoing Compliance

Don’t forget that if your company’s ownership structure changes, you need to update your BOI filing within 30 days.

Need Help Navigating the New Requirements?

If you're unsure whether your business needs to file or need assistance with your submission, we can help. Contact us today for more information.