New Business Filing Requirements COMING SOON

beneficial ownership information report

New business filing requirements are coming soon. Did you know if you own an LLC or Corp in the United States, you will be required to complete this fining next year (2024)?

Beneficial Ownership Information (BOI)
Here are the details ……

When must I report my company’s beneficial ownership information to FinCen?
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

A reporting company created or registered on or after January 1, 2024, will have 30 days to file its initial beneficial ownership information report.

Where do I file?

FinCEN will begin accepting beneficial ownership information reports on January 1, 2024. Helpful ownership information reports will not be received before then.

Do I need to file a BOI Report?
Most business entities formed by filing formation paperwork with a state agency must submit a beneficial ownership information report, as are foreign companies registered to operate in the United States. This includes both foreign and domestic:
• LLCs
• C Corporations
• S Corporations
• Professional corporations
• Limited and Limited Liability Partnerships
• Any other entity formed under the laws of a state or tribal government
• Any other entity formed outside the US that is registered to conduct business in the United States

Informal business structures that are not formed by filing with the state, such as sole proprietorships and, in most states, general partnerships, are not required to file.

What do I need to provide?
Business information:
• Legal name
• Any DBA/trade names
• Permanent address
• State or jurisdiction where you formed your business
• Unique identifying number
Beneficial owner* and company applicant information:
• Full legal name
• Permanent residential or business address. Sorry, no PO boxes are allowed
• Date of birth
• Unique identifying number from a passport or state ID

*A beneficial owner is anyone at your company who has substantial control. This included anyone with a 25% financial hold over the business.

Will there be a fee for submitting a BOI report to FinCEN?
No. There will be no fee for submitting your beneficial ownership information report to FinCEN.

What reporting companies are exempt from filing a BOI Report?
There are currently twenty-three different types of businesses that qualify for BOI exemption. These include banks, public utilities, inactive entities, tax-exempt entities, and significant operating companies. View Fin for a complete list.

Can I opt out of the BOI Report?
If you leave the business entirely, unfortunately, this is mandated on a federal level.

What happens if I don’t file my BOI Report?
You could be fined $500 a day (up to $10,000) and face up to two years of jail time.

Why is this being required?
It is mandated as part of the Corporate Transparency Act (CTA). BOI reporting aims to help government agencies and banking institutions fight and reduce financial claims like fraud and money laundering more effectively.