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BOI Report Filing for Medium-Sized Businesses

By FileForms | August 10, 2023
BOI Report Filing for Medium-Sized Businesses

How should a medium-sized business comply with the newly-passed Corporate Transparency Act?
You can request representation and BOI report filing assistance from FileForms.

Do Medium-Sized Businesses Have to File BOI Reports Under CTA?

Companies expected to file BOI reports (“reporting companies”) include the following:

  • Limited partnerships, general partnerships, and limited liability partnerships
  • Business trusts
  • Limited liability companies (LLCs)
  • Corporations

Foreign corporations and LLCs registered to do business in the United States must also register with a secretary of state to do business in that state.

Businesses in retail, professional services, real estate, construction, technology, and wholesale trade should all anticipate filing BOI reports.

If you’re not sure whether or not your medium-sized business needs to file a BOI report, an analysis should be done to determine whether your business is required to file, and is therefore a reporting company. To begin, ask yourself:

  • Does someone within your hierarchy directly or indirectly own or control at least 25 percent of your business’s ownership interests?
  • When you established your company, did you or a representative (applicant) file formative documents with a Secretary of State?

If you can answer yes to both of these questions, then your business should anticipate filing a BOI report.


BOI Filing Exceptions
The CTA notes that only certain businesses have a legal responsibility, starting January 1, 2024, to file BOI reports. Exceptions to the rule include certain entities in the following industries:

  • Publicly traded companies
  • Banks
  • Credit unions
  • Money services businesses
  • Brokers and dealers
  • Insurance companies and state-licensed insurance producers
  • Public utilities
  • Pooled investment vehicles
  • Other institutions filing business reports with the SEC

If a medium-sized business employs more than 20 full-time team members, generates a gross revenue of $5 million or more, and maintains a physical location, it is also exempt from filing.

Any business that fails to meet these established standards has a legal responsibility, under the CTA, to make the details of their business and beneficial owners known beginning on January 1, 2024. If you’re unsure whether your medium-sized business is exempt from BOI report filing, you can let FileForms investigate your circumstances.


When Is My Reporting Company Required to File?
Businesses established prior to 2024 have until January 1, 2025, to file their reports.
Businesses established after January 1, 2024, must file their BOI reports within 90 days of the business’s formation.


What Information Should a Reporting Company’s BOI Report Include?
If a medium-sized business has an obligation to file a BOI report, that business’ beneficial owner and company applicant must include the following information in the report:

  • The beneficial owner and company applicant’s names
  • Dates of birth
  • Residential address
  • Identifying numbers from appropriate materials, including a driver’s license or passport

Similarly, medium-sized businesses obligated to file a BOI report must ensure that the following information appears in the report they file with FinCEN:

  • A business’s legal name
  • Nicknames or trade names that a business uses in operations
  • The business’s legal address
  • The jurisdiction in which a beneficial owner and company applicant formed the business
  • The business’s taxpayer identification number


Identifying a Beneficial Owner
To identify a business’s beneficial owner, you should ask yourself:

  • Does an individual associated with your business directly or indirectly control at least 25 percent of the business’s interests?
  • Does anyone, such as a board of directors or other officers, have substantial control over the business (such as the ability to make decisions, write checks, etc.)?

In addition to having direct or indirect equity interest, a person may be considered a beneficial owner within a business if they exert a significant control over the company.


Making Mistakes in a BOI Report
Willfully incorrect or fraudulently reported information can lead to fines or imprisonment. If you notice that you’ve incorrectly represented your business’s information, you have 30 days to file a new, corrected BOI report.

In addition, businesses that fail to file BOI reports within their deadlines can face financial consequences for their misconduct. These businesses will be fined $500 per day until they file their BOI reports.


Can Someone Else File a Report Company’s BOI Report?
Medium-sized businesses can request that another party file a BOI report on their behalf. However, these parties have an obligation to inform the report-receiving party that a third party will oversee their BOI filing for the year in which said representation applies.


FileForms Serves Your Medium-Sized Business
The nature of the Corporate Transparency Act and related BOI reports may prove naturally confusing to medium-sized businesses and their financial advisors starting in 2024. Fortunately, no medium-sized business owner needs to try and take on a BOI report alone.

Interested parties can turn to FileForms for help breaking down and filing their 2024 BOI report. FileForms offers consummate and experienced financial services to businesses in need.

Whether you want to better understand how the CTA impacts your business, you can sign up for updates through FileForms today.