What is it?
The Beneficial Ownership Information Reporting Rule (BOI) is part of the Federal Corporate Transparency Act (CTA) passed in 2022. It requires certain entities to report ownership information to FinCEN (Financial Crimes Enforcement Network – Division of the US Treasury). This is not part of the tax code and this new reporting requirement is not filed with the IRS.
Who must file?
There is a framework to determine which types of entities are exempt, but in general most Limited Partnerships, Limited Liability Partnerships, Limited Liability Corporations, and Corporations are required to file. Professional legal advice is recommended for those choosing not to file.
For exemptions, please additional information section below.
What type of information is collected?
Company information:
- Legal Name
- Any trade or d/b/a names
- Current address
- State, Tribal, or foreign jurisdiction of formation or registration
- Taxpayer Identification Number TIN (including Employer Identification Number EIN)
Each Beneficial Owner: Any individual who, directly or indirectly, either exercises substantial control over a reporting company or owns/controls at least 25% of the ownership interest of a reporting company.
- Full legal name
- Date of birth
- Current address
- Image, jurisdiction, and unique identifying number of a Passport or State driver’s license
What is the penalty for noncompliance?
Potential civil penalties include fines of $500 per day, up to $10,000, while criminal penalties could include imprisonment of up to two years.
What is the deadline to file?
January 1, 2025 for all entities that were formed prior to 2024. All new entities must file within 90 days of formation.
How do I file a BOI?
Your BOI can be filed directly on the FinCENs website: https://www.fincen.gov/boi
Where do I find additional information about the BOI?
Disclaimer: The information above is provided for information purposes only. It is not intended to be legal or tax advice. Determining BOI reporting requirements is legal in nature and we encourage you to contact legal counsel to determine how the CTA will impact your business.