Filing a Beneficial Ownership Report (BOI Report) is an important regulatory requirement, but the process can be confusing if you’re unfamiliar with the reporting obligations and definitions.
This guide was created to help business owners understand if their entity qualifies as a reporting company that is subject to BOI report submission standards.
We’ll explain key terms from the Corporate Transparency Act and explore various types of businesses that may qualify for exemptions. For those who need to report, we’ll outline how to identify beneficial owners and properly file the required information.
The first step is to determine if your company is required to report beneficial ownership information (BOI) to FinCEN. Reporting companies generally include domestic entities like corporations, partnerships, and LLCs formed in any U.S. state, as well as foreign companies registered to do business in the U.S. However, certain types of regulated or large operating companies are exempt.
According to the Corporate Transparency Act, reporting companies are defined as:
Any corporation, limited liability company, or other similar entity that is created by the filing of a document with a secretary of state or similar office under the law of a state or Indian tribe.
Any corporation, limited liability company, or other similar entity that is created by the filing of a document with the secretary of state or a similar office under the law of a foreign country and registered to do business in the United States by the filing of a document with a secretary of state or similar office under the law of a state or Indian tribe.
Unless they qualify for an exemption, any corporation, LLC, or partnership legally formed in the U.S. or registered to operate here as a foreign entity would generally be considered a “reporting company” required to submit beneficial ownership information.
Here are some common types of businesses that may be exempt from reporting beneficial ownership information:
There are also exemptions for certain utilities, marketing cooperatives, and inactive or dormant companies with limited activities. FileForms can help determine if a specific business qualifies for an exemption.
If required to report, identify any individuals who directly or indirectly own 25% or more of the company or exercise substantial control. Substantial control includes senior officers and those who direct important decisions.
Indirect ownership through other entities must also be considered. If you’re unsure who may be considered beneficial owners in your company, using FileForms can help.
Collect details on the reporting company like legal name, addresses, and Taxpayer ID Number. You’ll also need a name, date of birth, address, and identification number for each beneficial owner. Accepted IDs include driver’s licenses, passports, and tribal IDs.
Beginning January 1, 2024, reports can be filed electronically on FinCEN’s secure website. Initial reports are due by January 1, 2025 for pre-existing companies or 30 days after the formation of new companies. Updates must be filed within 60 days when beneficial ownership changes.
However, compiling the right information and submitting it correctly can be challenging.
FileForms was created to assist businesses and their advisers in submitting regulatory forms and reports in a timely, compliant, and stress-free manner.
To ensure our clients can file BOI reports accurately and on time, we offer a cutting-edge technological platform, which allows us to rapidly aggregate entity and ownership information. We help you cut through the red tape and reduce the risk of errors that can lead to noncompliance fines and headaches.
Companies should prepare now to meet initial reporting deadlines. The FileForms team is composed of industry domain specialists who have extensive knowledge in financial services, legal matters, tax regulations, and accounting practices.
Our experience enables us to effectively serve your business and continually develop innovative technological solutions aimed at streamlining corporate filing requirements. Learn more about how we may be able to help you by contacting us today.