Understanding Beneficial Ownership Information (BOI) Reporting

In the evolving landscape of business compliance, understanding Beneficial Ownership Information (BOI) reporting is crucial for business owners. The following information will guide you through the essentials, ensuring your business stays compliant and informed.

What is Beneficial Ownership Information (BOI) Reporting?

Beneficial Ownership Information (BOI) reporting refers to the mandatory disclosure of information about individuals who have significant control or ownership interests in a business entity. The primary goal of BOI reporting is to enhance corporate transparency. By identifying the individuals behind corporate entities, regulatory bodies can better track and prevent money laundering, fraud, and other illicit activities.

The Financial Crimes Enforcement Network (FinCEN), under the U.S. Department of the Treasury, oversees BOI reporting. FinCEN's new requirements aim to close loopholes that allow anonymous entities to hide their true owners.

Who Needs to Report?

A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25 percent of a reporting company’s ownership interests.

Your company must report beneficial ownership information to FinCEN if it falls into one of the following categories:

  • Corporations, Limited Liability Companies (LLCs), or similar entities created by the filing of a document with a secretary of state or any similar office in the United States.
  • Foreign 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.

When To Report?

FinCEN began accepting reports on January 1, 2024. Here are the key deadlines for reporting:

  • Companies Created or Registered Before January 1, 2024, must report BOI by January 1, 2025.
  • Companies Created or Registered in 2024 must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
  • Companies Created or Registered On or After January 1, 2025, must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
  • Updates or Corrections to previously filed beneficial ownership information must be submitted within 30 days

To learn more about BOI reporting and requirements, visit the following FinCEN resources: