If you own or control a company in the United States, you may need to file your initial BOI report with the Financial Crimes Enforcement Network (FinCEN).
Below is what you need to know.
Why Do You Need to File a BOI Report?
BOI stands for beneficial ownership information, and it refers to the details of the individuals who ultimately own or control your company.
The BOI reporting rule was issued by FinCEN to enhance the transparency and accountability of the U.S. corporate system and to prevent the abuse of shell and front companies by criminals, corrupt actors, and tax evaders.
The BOI reporting rule requires certain businesses to report information to FinCEN about their beneficial owners and company applicants (the individuals who form or register the companies).
The purpose of the rule is to create a secure and confidential database of beneficial ownership information that can be accessed by authorized law enforcement agencies, financial institutions, and other entities for legitimate purposes.
By filing your initial BOI report, you are helping to protect the U.S. national security and financial system from illicit use. You are also demonstrating your commitment to ethical and responsible business practices and enhancing your reputation and credibility among your customers, partners, and regulators.
Who Needs to File a BOI Report?
The BOI reporting rule applies to reporting companies, which are defined as corporations, limited liability companies, or other similar entities that are:
- Created by filing a document with a secretary of state or a similar office under the law of a state or Indian Tribe; or
- Formed under the law of a foreign country and registered to do business in the United States.
However, there are some exemptions for certain types of entities, such as banks, credit unions, and insurance companies. You can find the full list of exemptions on the FinCEN website.
If you are not sure whether your company is a reporting company or qualifies for an exemption, you should consult a lawyer or contact FinCEN for guidance.
What Information Do You Need to Include in Your Initial BOI Report?
To file your BOI report, you need to provide the following information for each beneficial owner and applicant of your company:
- Full legal name
- Date of birth
- Current residential or business street address
- A unique number from an acceptable identification document, such as a passport, driverās license, or FinCEN ID
A beneficial owner is an individual who:
- Directly or indirectly owns or controls at least 25% of the ownership interests of the company, or
- Exercises substantial control over the company.
An applicant is an individual who files an application to form or register the company, or who registers the company on behalf of another individual.
You do not need to report information for intermediaries, nominees, custodians, agents, or employees who act on behalf of another individual, unless they are also beneficial owners or applicants themselves.
You also do not need to report information for entities that own or control your company, unless they are also beneficial owners or applicants themselves.
When and How to File Your Initial BOI Report
You can file your initial BOI report using the BOI E-Filing System, which is a secure and user-friendly online platform that allows you to submit, update, and correct your BOI reports electronically. You can also create a FinCEN ID.
The deadline for filing your initial BOI report depends on when your company was created or registered.
- If your company was in existence as of December 31, 2023, you have until January 1, 2025, to file your initial BOI report.
- If your company was created or registered on or after January 1, 2024, you have to file your initial BOI report within 30 days of receiving notice of your companyās creation or registration.
You also have to update your BOI report within 90 days after any change in the information you previously reported. You can update or correct your BOI report using the same BOI E-Filing System.
We Can Help You File Your Initial BOI Report
Filing your initial BOI report may seem daunting, but you do not have to do it alone. We can help you.
At Jurado & Associates, P.A., we specialize in corporate and business law. We have the expertise and experience to help you with your initial BOI report and any other legal issues that you may face as a business owner.
We can help you:
- Determine whether your company is a reporting company or qualifies for an exemption,
- Gather and verify the information that you need to include in your initial BOI report,
- Submit your initial BOI report
- Update or correct your BOI report as needed.
Ready to File Your BOI Report?
If you are ready to file your BOI report with FinCEN, or if you have any questions or concerns about the BOI reporting rule or any other legal matter, do not hesitate to contact us.
You can reach us by phone at (305) 921-0976, by email at [email protected], or by WhatsApp at +1 (305) 921-0976.
