Upcoming Webinar: May 22nd, 2024 – The Corporate Transparency Act: Navigating BOI Reporting

Background Background

What is a BOI Report?

The Beneficial Ownership Information (BOI) Report is a new filing requirement enforced by the U.S. Treasury’s Financial Crime Enforcement Network (FinCEN) which is a result of the Corporate Transparency Act (CTA).

When the time comes to file a BOI report, you can turn to FileForms to ensure that your business complies with the new reporting standards.

What’s the Relationship Between the Corporate Transparency Act and BOI Reports?

The Corporate Transparency Act, or CTA, serves as a money laundering and financial misuse law. Congress passed this act in an effort to reduce illicit activities such as money laundering and terrorism financing.

As such, businesses established before 2024 that meet certain criteria are now considered reporting companies. These reporting companies have a responsibility to file beneficial ownership information, or BOI reports, by January 1, 2025.

In addition, reporting companies established in 2024 have 90 days to file their BOI report from the date of formation when they register with the Secretary of state.

Which Companies Need to File a BOI Report?

Established and newly-founded businesses in the following industries are likely to be reporting companies:

  • Retail
  • Professional services
  • Real estate
  • Healthcare
  • Construction
  • Technology
  • Wholesale trade
  • Hospitality

However, there are exemptions for these industries. Any company that checks one of the following boxes is exempt from filing a BOI report:

  • Employs over 20 employees on a full-time basis
  • Maintains a physical office within the United States
  • And has filed federal taxes within the most recent tax year that depict more than $5 million in gross sales 

There are also other industries that are highly regulated which are exempt under the Corporate Transparency Act.