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Beneficial Owner Information (BOI) Reporting

Beginning January 1, 2024, the federal Corporate Transparency Act (CTA) requires certain types of entities to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of Treasury.

We're here to help you navigate this new reporting requirement.

Do you offer BOI Reporting services?

Yes, we're here to help.

What is Beneficial Owner Information Reporting, exactly?

Here's what you need to know.

Do I need to file a BOI report?

It depends. Because the government.

That's a lot of info, can you give me a synopsis?

Everything in bullet points.

Unlike many firms and most law offices, we do offer Beneficial Owner Information (BOI) Reporting services. 

We offer this service to all business owners in need of assistance, not just our current clients. 

Our firm employs an attorney to file these reports as the paperwork is legal in nature, not tax-based. We file the initial report and have a system in place to ensure any changed Beneficial Owner Information (BOI) is reported within the 30 day window. Contact us today to schedule a consultation.

 

Starting in 2024, newly formed corporations, Limited Liability Companies (LLCs), limited partnerships, and other entities that file formation papers with a state’s Secretary of State’s Office, or similar government agency, must file a report with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), providing specified information regarding the entity’s ‘beneficial owners.’ Entities in existence prior to January 1, 2024, have until January 1, 2025, to file these reports.

 

This reporting is part of the federal government’s anti-money laundering and anti-tax evasion efforts and is an attempt to look beyond shell companies set up to hide money. Unfortunately, it will impose burdensome reporting requirements on most businesses. The willful failure to report information, and timely update any changed information, can result in significant fines (up to $500 per day until the violation is remedied, or if criminal charges are brought, fines of up to $10,000 and/or two years imprisonment). These penalties can be imposed against the beneficial owner(s), the entity, and/or the person completing the report.

 

Beneficial owners are broadly defined and involve owners who directly or indirectly own more than 25% of the entity’s ownership interests or exercise substantial control over the reporting company, even if they don’t have an ownership interest. While this may appear to impact only a few significant owners, it can encompass many senior officers of the business as well as those individuals involved in any significant business decisions (e.g. board members and controllers). Given the severity of the fines, it may be safer to err on the side of over-inclusion rather than under-inclusion.

 

For entities formed in 2024 and beyond, information will also have to be provided about the company applicants: the person who files the formation/registration papers, and the person primarily responsible for directing or controlling the filing of the documents.

 

The types of information that must be provided and kept current for these beneficial owners include the owner’s legal name, residential address, date of birth, and unique identifier number from a non-expired passport, driver’s license, or state identification card. The entity will also have to provide an image of any of these forms of documentation to FinCEN for all beneficial owners.

 

Most entities must file these reports by January 1, 2025. However, entities formed in 2024 will have just 90 days from the entity’s formation/registration to file these reports. Entities formed after 2024 must file the report within 30 days of the entity’s formation/registration. Once a report is filed for any entity formed at any time, there will only be 30 days to file reports reflecting a change in Beneficial Owner Information.

 

Should any of the reported information change, or a beneficial ownership interest be sold or transferred, the entity must report this information within 30 days of the change or face the potential of having the penalties described above imposed. Changes include reporting a beneficial owner's change of address or name, a new passport number when a passport is replaced or renewed, or providing a copy of a renewed driver's license.

 

Many taxpayers were notified by their attorneys that their law firm is not providing any reporting services related to this new regulation. Many have pointed their clients toward a financial planner or CPA. The Beneficial Owner Information form is not a tax or financial document. Is it a legal document. However, our office employs an attorney to file these forms on behalf of those clients who choose to engage us for that service. 

 

You can file the report yourself and also file any subsequent reports when Beneficial Owner Information changes. We recommend disregarding any mailers, phone calls, etc. asking you to report and go directly to the FinCEN website. It is fincen.gov/boi. Going directly to the reporting page will help you avoid scammers. Fraudsters are already attempting to steal sensitive information from taxpayers by sending URLs and QR codes titled 'Important Compliance Notice' and reference the Corporate Transparency Act. These communications will look official, but don't be fooled. If you choose to file the reports yourself, the FinCEN website offers brochures, videos and other resources to help you file. How it intends to help you update changes in Beneficial Owner Information from that point on remains to be seen.

 

If you are uncertain if you need to file a BOI Report, feel free to contact us for a consultation. 

 

 

Filing Dates & Deadlines:

  • Entities formed BEFORE 2024 have until January 1, 2025 to file their first Beneficial Owner Information (BOI) Report.

  • Entities formed ON OR AFTER January 1, 2024 have 90 days to file the first Beneficial Owner Information (BOI) Report. If this applies to your business and you need assistance, contact us to schedule a consultation.

  • After the initial report is filed, every entity (regardless of formation date) has just 30 days to update any changes to Beneficial Owner Information (BOI), including name address, driver's license, etc.)

 

Who Must Comply?

  • Beneficial Owners are involved owners who directly or indirectly own more than 25% of the entity's ownership interests, or exercise substantial control over the reporting company, even if they don't have an ownership interest. This can include senior officials like Board Members and controllers or others involved in any significant business decisions.

  • Entities formed after 2023 will also have to provide information about the company applicant or person who files the formation/registration papers.

 

What Information Must Be Reported?

  • Information that must be provided and kept current for each Beneficial Owner includes:

    • legal name

    • residential address

    • date of birth

    • unique identifier from current passport or driver's license and images must be uploaded to FinCEN

 

How Do I File?

  • Entities can file on their own. Go directly to fincen/gov/boi to file your report. Avoid scammers by not clicking on links or responding to mailers/emails from unknown sources offering to file for you.

  • For entities formed before 2024, we recommend waiting to file the initial Beneficial Owner Information (BOI) Report. Changes may happen as government officials receive feedback from Beneficial Owners on the system and this regulation. Additionally, once the initial report is filed, entities are obligated to update any changed information about Beneficial Owners within 30 days. Once you're on the train, you can't get off.

 

Can I Get Help Filing These Reports?

  • Yes. Our firm employs an attorney to file these reports as the paperwork is legal in nature, not tax-based. We file the initial report and have a system in place to ensure any changed Beneficial Owner Information (BOI) is reported within the 30 day window. Contact us today to schedule a consultation.

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