Beneficial Ownership Report
- Nov 6, 2024
- 2 min read
In 2021, Congress enacted the bipartisan Corporate Transparency Act to curb illicit finance. This law requires many companies doing business in the United States to report information about who ultimately owns or controls them.
All businesses have until January 1, 2025 to report BOI. Here is the link to file the report: https://www.fincen.gov/boi
I have no idea if you have/haven't already completed this or if it's something that your registered agent is doing for you. I just wanted to bring it to your attention in case it hasn't already been done. They started accepting the reports in January 2024.
What is BOI?
BOI is a new rule that requires companies to report information about their real owners.
This means the people who actually own and control the company, even if they aren't listed as the official owners.
The goal is to make it harder for criminals to hide their activities behind anonymous companies.
Why is BOI important?
It helps law enforcement agencies fight money laundering, tax evasion, and other financial crimes.
It makes it easier for businesses and financial institutions to understand who they are dealing with.
It increases transparency in the financial system.
Who needs to report BOI?
Most types of companies, including corporations, LLCs, and partnerships, need to report BOI.
There are some exceptions, like publicly traded companies and certain non-profit organizations.
What information needs to be reported?
The company's legal name and address
The names, addresses, and identifying information (like a driver's license number) of the beneficial owners
Information about the company's officers and directors
When does BOI need to be reported?
Companies must report their BOI information within a certain timeframe after they are formed or registered.
Otherwise, the deadline is December 31, 2024
They must also update their information if there are any changes.
How is BOI reported?
Companies will need to file their BOI information with the Financial Crimes Enforcement Network (FinCEN).
This can be done electronically through FinCEN's secure filing system.
Comments