​How to Report Beneficial Ownership Information with FinCEN.org

With new requirements from the U.S. Department of the Treasury, certain businesses now need to file Beneficial Ownership Information (BOI) reports with FinCEN to maintain compliance. In this post, we’ll outline what BOI reporting involves, who needs to file, and what information you'll need to provide. Plus, we’ll go over how we can help streamline this process for you, so you can focus on your business with peace of mind.

What is BOI Reporting, and Why is It Important?

BOI reporting requires businesses to disclose information about their beneficial owners—those who hold significant ownership or control over the company. This measure promotes transparency and helps combat financial crimes by giving regulators insights into company ownership structures.

Who Needs to File a BOI Report?

BOI reporting generally applies to:

FinCEN uses 3 main requirements to determine who must report:

   1.  A corporation, a limited liability company (LLC), or group otherwise created in the United States by            filing a document with a secretary of state or any similar office under the law of a state or Indian                tribe
         - with less than 20 employees AND
         - less than $5,000,000 in gross receipts or sales
         - NOTE: This DOES NOT include Sole Proprietorship companies

   2.  A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.
   

   3.  Beneficial owners in the company.
         - They generally exercise “substantial control” over a reporting company or own 25% of the                           ownership interests

Some entities, such as large operating companies or regulated businesses, may be exempt. If you're unsure, we can help determine whether your business is subject to BOI reporting.

Who is a beneficial owner

​A beneficial owner is any individual who meets one of the following criteria:

   1. Ownership: Holds at least 25% ownership interest in the company.
   2. Control: Has significant influence over the company’s operations, such as a CEO, manager, or anyone           with substantial decision-making authority, even if they do not own a 25% interest.

This includes individuals directly or indirectly holding interest or control and ensures that the government has accurate information on who truly holds the power or ownership in a company.

Important Notes:

   -  A reporting company may have multiple beneficial owners.
   -  For example, one individual could be a beneficial owner by exercising substantial control, while others        could qualify by owning or controlling at least 25% of the company.
   -  A single individual can be considered a beneficial owner if they both exercise substantial control and            own at least 25% of the company.

There is no maximum limit on the number of beneficial owners required to be reported. Each individual who meets these criteria must be included in the BOI report. Please feel free to reach out if you need more information on determining beneficial owners or complying with BOI reporting requirements.

Filing Deadlines

Meeting FinCEN deadlines is crucial to avoid penalties. Here’s what you need to know:

   1. Newly Created Businesses (After January 1, 2024):

        - BOI report is due within 30 days of formation or registration.

   2. Existing Businesses (Formed Before January 1, 2024):

        - BOI report must be filed by January 1, 2025.

   3. Changes in Ownership or Control:

        - Any updates must be reported within 30 days of the change.

What Information Do We Need to File Your BOI Report?

To ensure a complete and compliant filing, we’ll need the following information from each beneficial owner of your business:

   1. Full Legal Name
   2. Date of Birth
   3. Residential Address
   4. Social Security Number (SSN) or an equivalent identifier for non-U.S. residents
   5. Copy of Driver’s License or Passport – For each individual who owns 25% or more of the business, or for         anyone with substantial decision-making power, such as a CEO who is not an owner.
   6. Company Information:
        - Full legal name of the business
        - EIN (Employer Identification Number)
        - Business address
        - Date the Company Started
        - EIN Confirmation Letter (or any documentation received from the Secretary of State or IRS that                  verifies the company’s EIN)
        - Who registered your company for you.

Penalties for not filing

Companies that don't file BOI reports may face penalties of up to $10,000, or $500 per day.

How We Can Help

Completing a BOI report accurately and on time can be complex, but we’re here to help! Our services cover every aspect of BOI reporting, from gathering all necessary documentation to verifying details and submitting the report to FinCEN on your behalf.

Pricing Information

Our BOI reporting service starts at $75, covering all of the above requirements. Depending on the complexity of your business structure and the number of beneficial owners, additional fees may apply. For more involved ownership structures, we’re happy to schedule a consultation to go over specifics.

Stay Compliant and Avoid Penalties

​
Failing to file a BOI report by the deadlines can lead to significant penalties. Start early to ensure compliance, and let us help make the process seamless. If you’re ready to file or would like to discuss your reporting requirements, reach out today—we’re here to guide you every step of the way.  

If you would like to file this yourself please go to 

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