What is BOI Reporting? You are required to file identifying information about the individuals who directly or indirectly own or control your company with the Financial Crimes Enforcement Network (FinCEN) in order to satisfy requirements under the Corporate Transparency Act.
The Beneficial Ownership Information Reporting Rule went into effect Jan. 1, 2024, and it’s important to understand this new law given the severity of criminal and civil penalties for failure to file, which include imprisonment and fines.
Avoid Serious Penalties: Prevent criminal and civil penalties, including imprisonment for up to two years and/or fines up to $10,000, and civil fines of up to $500/day.
Who is a Beneficial Owner? A beneficial owner under the Corporate Transparency Act is an individual who directly or indirectly: (1) owns or controls at least 25% of your company’s ownership interests, or (2) exercises substantial control over your business. Common examples of someone that exercises substantial control can include the following:
An important decision-maker for the reporting company
A senior officer (president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any other officer with a similar function)
An individual with the authority to appoint or remove certain officers or a majority of directors (or similar body) of the company
When is the Beneficial Ownership Information Report Deadline?
Generally, business entities formed before Jan. 1, 2024 will have until Dec. 31, 2024 to file.
Business entities formed on or after Jan. 1, 2024 will have 90 days after formation to file.
Business entities that amend their formation documents on or after Jan. 1, 2024 will have 30 days to submit a new report.
Who Must File? Corporations and limited liability companies (LLC) will be required to report identifying information about the individuals who own or control a business with the FinCEN to satisfy requirements under the Corporate Transparency Act. This new requirement applies to most business entities.
How Can We Help? We can help you prepare and file the Beneficial Ownership information to FinCEN for a minimal fee. Contact us!!
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