After your LLC or corporation has been officially formed under state law, you’ll need to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). This report communicates basic information about your company and the individuals with the most control over business decisions and profits to the federal government.
Unlike state filings, the information contained in your BOI report does not go on the public record—it can only be accessed by authorized parties. Mandated by the Corporate Transparency Act (CTA), the BOI report is intended to help law enforcement agencies and banking organizations prevent and detect fraud, money laundering, and other financial crimes
Because there are steep penalties for not filing, it’s important to understand what’s required on your BOI report.
You can also rely on the expertise of our professional filing team to get your report filed correctly and on time with our $9 BOI report filing service.
To understand what kind of information you need to provide to FinCEN on your report, let’s start with a few key terms:
Your report must include the following details:
Beneficial Owner(s) and Company Applicant(s):
This is the same information you must disclose in order to obtain a FinCEN identifier.
The filing requirement is effective January 1, 2024, but there are separate due dates for new and existing businesses.
BOI reports must be filed online using the FinCEN’s Business Ownership Secure System (BOSS) database. There is no filing fee.
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Here are a few special filing rules to remember:
Companies formed before 2024 don’t need to provide information on company applicants.
You don’t have to provide identifying information for beneficial owners who are minors. Instead, you can list the information for their parent(s) or legal guardian(s).
When a beneficial owner is another company, the information for the owners of that company must be listed, not just the name of the comp
If any of the information on your BOI report changes, you’ll need to update your report within 30 days of the change. Similarly, if you realize that any of the information on your report is inaccurate, you must correct it within 30 days.
You can make corrections and updates online through the FinCEN database. There’s no charge for making changes to your report.
If you run a small business, it’s very likely that you’ll need to file. The CTA lists 23 exemptions to filing, which apply to more sizable ventures and businesses that are already highly regulated. These include:
Large operating companies with 20+ full-time employees and over $ 5 million in gross receipts or sales for the previous year
Inactive entities that haven’t engaged in business and also haven’t sent or received over $1,000 to or from any other entity over the past 12 months
Banks and credit unions
Investment companies and brokers or dealers
Public utility companies
Most non-profit organizations are also exempt.
Penalties for not filing—or for purposely providing FinCEN with false information—can be high. Violations could result in up to 2 years in jail. You may also be charged up to $500 per day of noncompliance, up to $10,000.