What Is the New Beneficial Ownership Information Report Requirement for LLCs and Corporations?
The Financial Crimes Enforcement Network (FinCEN) now requires information regarding the people who own or control them through the Beneficial Ownership Information Report (BOIR).
In order to create better visibility and deter illegal activities, Congress passed the Corporate Transparency Act (CTA) in 2021. Under the CTA, reports are submitted to FinCEN, the government agency responsible for analyzing financial transactions in the interest of national security. Penalties for noncompliance can be hefty including monetary, civil and/or criminal.
At We File Your BOIR, we will make filing your BOIR a breeze! We will submit your form for only $99! Click here to get started and get in compliance immediately.!
What Is the New Beneficial Ownership Information Report Requirement for LLCs and Corporations?
The Financial Crimes Enforcement Network (FinCEN) now requires information regarding the people who own or control them through the Beneficial Ownership Information Report (BOIR).
In order to create better visibility and deter illegal activities, Congress passed the Corporate Transparency Act (CTA) in 2021. Under the CTA, reports are submitted to FinCEN, the government agency responsible for analyzing financial transactions in the interest of national security. Penalties for noncompliance can be hefty including monetary, civil and/or criminal.
At We File Your BOIR, we will make filing your BOIR a breeze! We will submit your form for only $99! Click here to get started and get in compliance immediately.!
We file your BOIR
Beneficial Ownership Information Report (BOIR) Requirements
What information do I need to have available for my Company?
Reporting companies will need to submit their:
- Legal name
- Any DBAs/trade names
- Physical street address
- Jurisdiction or State of formation
- EIN, SSN or TIN
What information do I need to have available for the Company Applicant and/or Beneficial Owner?
You will need to provide the following for each Beneficial Owner and/or Company Applicant:
- Name
- Date of birth
- Physical street address (no PO Boxes allowed)
- ID number from a Driver’s License, Passport or State ID
- Jurisdiction that issued the ID document
- Copy of identification
Why You Should File Your Report with We File Your BOIR
Our staff has years of experience in filing numerous documents for businesses of all sizes. All reports are filed and delivered within 24-72 hours of submission. Let us make filing your Beneficial Ownership Information Report a breeze!
What happens if I choose not to file my BOIR?
The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000.
Who is the Beneficial Owner if my company is a trust?
A trustee of a trust or similar arrangement may exercise substantial control over a reporting company and would therefore be listed as the Beneficial Owner.
What is a Reporting Company?
Domestic Reporting Companies: All entities created by a filing document with a Secretary of State or any similar agency with the United States including Corporations, Limited Liability Companies, etc.
Foreign Reporting Companies: Companies, formed under the laws of a foreign country, that is registered to do business in the United States by filing a document with a secretary of state or any similar office.
What is a Beneficial Owner?
A beneficial owner is any individual who, directly or indirectly:
Exercises substantial control over a reporting company; OR
Owns or controls at least 25 percent of the ownership interests of a reporting company
A reporting company can have multiple beneficial owners. FinCEN expects that every reporting company will be substantially controlled by one or more individuals, and therefore every reporting company will be able to identify and report at least one beneficial owner. However, ALL individuals that has at least 25% ownership, MUST be reported.
Can I Change My Beneficial Ownership Information After It Has Been Reported?
Yes. After you’ve submitted your BOIR, you have 30 days from the time any information changes to update the info in the system. For example, if your business changes ownership or adds a new beneficial owner, or if an original beneficial owner has a change of address, you’ll have 30 days from the time of the change to submit this new info.
We can help you with reporting BOIR changes. Just email support@wefileyouboir.com and we will send you a secure link to make updates and corrections.
Am I required to report my Company Applicants?
Not all reporting companies are required to report their company applicants to FinCEN. A reporting company is required to report its company applicants if it is either
Domestic reporting company created on or after January 1, 2024; or
Foreign reporting company first registered to do business in the United States on or after January 1, 2024.
Domestic reporting companies and Foreign Reporting companies created or first registered to do business before January 1, 2024 are not required to report their company applicant.
When Does My Company Need to File?
Reports will be accepted starting on January 1, 2024.
Companies created or registered to do business before January 1, 2024, will have until January 1, 2025 to file their initial BOI reports.
Reporting companies created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving actual or public notice that their company’s creation or registration is effective to file their initial BOI reports. Specifically, this 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports.
Who is the Company Applicant of my company?
This is the individual who directly filed the document that created a domestic reporting company, or the individual who directly filed the document that first registered a foreign reporting company. This individual would have actually physically or electronically filed the document with the secretary of state or similar office.
The other possible company applicant is the individual who was primarily responsible for directing or controlling the filing of the creation or first registration document. This individual is a company applicant even though the individual did not actually file the document with the secretary of state or similar office.
Who Is Exempt From Reporting?
While most small businesses must report their beneficial owner information, there are a few businesses that do not need to file. Businesses and services that don’t have to file a report include:
- Any financial brokers and dealers
- Money transferring or transmitting service companies
- Certain banks and bank holding companies
- US government authorities
- Large companies with more than $5,000,000 in gross sales that have a physical operating office in the US and more than 20 full-time employees
However, these businesses aren’t entirely excluded from giving their beneficial ownership information. They’re already reporting their beneficial ownership information; just to a different agency.