As a small business owner, understanding and complying with Beneficial Ownership Information (BOI) reporting requirements can be confusing and overwhelming. At Business Filing, we specialize in simplifying the BOI filing process for you. Our comprehensive guide breaks down the complexities of BOI reporting into clear, manageable steps, ensuring that you know exactly what information to gather to file your report correctly.
With our expert guidance, practical tips, and detailed instructions, you'll be able to navigate BOI reporting requirements with confidence. Let us help you avoid common pitfalls, maintain compliance, and focus on growing your business.
A FEDERAL REQUIREMENT FOR REPORTING COMPANIES
Many business owners have heard about BOI, but what is it? Beneficial Ownership Information (BOI) reporting is a federal requirement for foreign companies and refers to the details of individuals who own or control a reporting company, either directly or indirectly. These beneficial owners typically have significant influence over the company, even if they aren't the legal owners.
In 2021, Congress enacted the Corporate Transparency Act. This law aims to help law enforcement prevent, identify, and combat financial crimes. Under the CTA, most businesses were required to file a Beneficial Ownership Information [BOI] Report with the Financial Crimes Enforcement Network (FinCEN).
As of Mar 2, 2025 The United States Treasury Department will no longer enforce any penalties or fines associated with the BOI reporting rule under the existing regulatory deadlines, however this is subject to change.
Just in 2025 alone, BOI reporting requirements have changed several times. We encourage you to file a BOI Report for your company so that you are not taken by surprise when/if the United States Treasury Department enforces this reporting rule yet again.
Companies required to report Beneficial Ownership Information (BOI) to FinCEN are called reporting companies. At this time, Foreign companies or entities are required to file a BOI Report with FinCEN.
Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
Your company may be a reporting company and need to report information about its beneficial owners if your company is a foreign company and was registered to do business in any U.S. states or Indian tribe by such a filing.
UNDERSTANDING WHO QUALIFIES IN YOU BUSINESS
Understanding who qualifies as a beneficial owner is crucial for compliance with the Corporate Transparency Act. A beneficial owner can be identified in two primary ways:
1. Ownership Interest: An individual who directly or indirectly owns or controls at least 25% of the company's ownership interests.
2. Substantial Control: A person who directly or indirectly has significant control over the company.
An individual exercises substantial control over a reporting company if the individual meets any of four general criteria:
1. the individual is a senior officer;
2. the individual has authority to appoint or remove certain officers or a majority of directors of the reporting company;
3. the individual is an important decision-maker; or
4. the individual has any other form of substantial control over the reporting company.
A reporting company can have multiple beneficial owners.
For example, a reporting company could have one beneficial owner who exercises substantial control over the reporting company, and a few other beneficial owners who own or control at least 25 percent of the ownership interests of the reporting company.
Filing a BOI report involves various requirements, including timing, identification criteria, and specific details you need to include. Let’s break down the key aspects to help you meet your initial filing deadline with ease.
WHAT INFORMATION SHOULD BE INCLUDED IN YOUR BOI REPORT?
1. Company Information: Provide your company’s registered name, trade names, current address, taxpayer identification number, and state of formation
2. Beneficial Owners: Include each owner’s name, residential address, birthdate, and identification details, such as passport or driver’s license number, along with the issuing state or jurisdiction.
3. Company Applicants: List the names, identification numbers, birthdates, and residential addresses of your company applicants.
Acceptable Forms of ID for Beneficial Owners and Company Applicants:
Non-expired U.S. driver’s license (including those from U.S. territories)
Non-expired state or local government ID or Indian Tribe document
Non-expired foreign passport (only if the individual does not have the other ID options)
Non-expired U.S. passport
FinCEN announced that it “will not issue any fines or penalties or take any other enforcement actions against any companies… until a forthcoming interim final rule becomes effective.” With the ever changing landscape of BOI reporting requirements this year, we encourage you to file a BOI Report for your company so you are prepared when/if the reporting requirements are back in effect.
KEEP YOUR BUSINESS COMPLIANT: FILE ON TIME
For your initial BOI report:
if you formed or registered your company before January 1, 2024, you have until January 1, 2025, to submit your report.
If your company was created or registered between January 1, 2024 - January 1, 2025, you'll need to file within 90 days from when you receive notice of your business registration.
After January 1, 2025, all reporting companies will be required to file their BOI reports within 30 calendar days of receiving notice of their company's registration or any changes to beneficial ownership information.
Regardless of when your business was formed, any updates or changes to beneficial ownership information must be reported within 30 days.
Information filed with FinCEN under the Corporate Transparency Act is confidential and is not disclosed to the public. Law enforcement can access this information to investigate potential financial crimes.
LET THE EXPERTS HANDLE IT FOR YOU
Navigating BOI reporting requirements can be daunting, but partnering with Business Filing ensures you get the support you need. Our team specializes in Beneficial Ownership Information (BOI) compliance, providing personalized assistance to streamline your reporting process. We handle all aspects of BOI reporting, from understanding Beneficial Ownership Information requirements to accurately submitting your report, saving you time and reducing stress.
The Financial Crimes Enforcement Network (FinCEN) estimates that reporting an initial BOI can take anywhere from 90 to 650 minutes and cost companies up to $2,600, depending on the complexity of the business structure.
WHY WORK WITH US?
- Expert Guidance: Our professionals have extensive experience in BOI reporting and can help you avoid common pitfalls.
- Accurate Filing: We ensure that all details in your BOI report are correct, minimizing the risk of penalties.
- Stress-Free Compliance: Focus on growing your business while we handle the complexities of BOI compliance. Our subscriptions to help you stay compliant year-round.
Don't let BOI reporting overwhelm you! Contact Business Filing today to get expert assistance with your BeneficialOwnership Information needs.