Understanding Beneficial Ownership Information (BOI) Reporting Requirements
As part of ongoing efforts to enhance financial transparency and combat financial crimes such as money laundering and terrorism financing, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) introduced Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA).
This regulation mandates that certain businesses disclose details about individuals who own or control the company to FinCEN. The goal is to ensure transparency in corporate ownership and reduce the misuse of entities for illegal activities.
Who Must File BOI Reports?
BOI reporting requirements apply to most small businesses formed or registered in the U.S., with exceptions for entities such as publicly traded companies and specific regulated industries. Affected businesses are required to report identifying information about:
Beneficial Owners – Individuals who own or control 25% or more of the company or have significant managerial authority.
Company Applicants – Individuals who filed the company’s formation documents (for entities created after January 1, 2024).
Information to be Reported
Businesses must disclose the following details for each beneficial owner and company applicant:
Full legal name
Date of birth
Current residential or business address
An identifying number (e.g., Social Security Number or Passport Number)
Deadlines for Compliance
Newly formed businesses: Must report within 30 days of formation.
Existing entities: Must comply by January 1, 2025.
Penalties for Noncompliance
Failure to file or submitting false information can result in significant civil and criminal penalties, including fines up to $500 per day of noncompliance.
How We Can Help
Our firm provides expert assistance to ensure your business complies with BOI reporting requirements efficiently and accurately. Contact us today to get started or learn more about how we can support your compliance needs.