HOW TO FILE THE BENEFICIAL OWNERSHIP INFORMATION REPORT
You may have come across information this year about having to report your business ownership to the government. Yes, it’s true! By December 31, 2024, all U.S. businesses will need to report information about the individuals who own or control them via a Beneficial Ownership Information Report (BOIR) . Any newly formed businesses in 2024 must do the same within 90 days of being registered with their state. Businesses will indeed be fined for not registering this required information. You should also note that completing the form is free! You do NOT need to pay to compete this nor pay anyone to help you process this one-time filing for your business. Let’s get into it!
What is a BOIR?
A Beneficial Ownership Information Report (BOIR) is a report that certain entities must file with the Financial Crimes Enforcement Network (FinCEN) to disclose information about their beneficial owners. Under the Corporate Transparency Act, U.S. small businesses must file beneficial ownership information reports with the Department of the Treasury. The Corporate Transparency Act (CTA), aimed at combating illicit financial activity, went into effect on January 1, 2024. A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.
This video walks through how to report beneficial ownership information (BOI) using the Financial Crimes Enforcement Network (FinCEN)’s E-Filing System.
I need help filing the report. What should I do?
Try following the above video or googling how to do it. There are tons of free videos online that walks you through how to complete the form. If you are a NYS resident, you can sign up for one of the the NYC Small Business Services free sessions. See link here.
Who is exempt from filing the BOIR?
FinCEN's BOIR exemptions mostly apply to businesses that are either sufficiently large or operate in highly regulated sectors. Exempt companies include banks, insurance companies, and types of financial service companies.
What happens if I don't file a BOI report?
Criminal Penalties: More severe consequences include up to two years of imprisonment and a fine of up to $10,000. These penalties apply if you willfully fail to file your report, submit false information, or fail to correct/update previously reported information.
What is a Beneficial Owner?
A beneficial owner of an LLC is an individual who has substantial control over the company or owns or controls at least 25% of the company's ownership interests. This includes anyone who can make important decisions for the company, such as a senior officer or someone who controls the board of directors.
Every LLC has at least one beneficial owner. The Financial Crimes Enforcement Network (FinCEN) requires all LLCs to file a Beneficial Ownership Information (BOI) report unless they are exempt. The BOI report includes information about each beneficial owner, such as their full name, date of birth, address, and a picture of ID.
New York's LLC Transparency Act will require non-exempt LLCs to report beneficial owner information to the New York Department of State starting January 1, 2026.
If I used a third party like Legal Zoom to form my company, who is the Reporting Company?
When filing a Beneficial Ownership Information (BOI) report for an LLC formed using LegalZoom, the reporting company is the LLC itself:
View a detailed list of FAQ here.
To visit the official U.S. government site to file your BOI, visit HERE.