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Beneficial Ownership Information( BOI) Reporting For LLC

Updated on July 02, 2024 - 10:30 AM
Stephanie Glanville, TaxBandits
Stephanie

Written by Stephanie Glanville

Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.

Effective on January 1, 2024, many businesses are now required to submit BOI Reporting with FinCEN. This new reporting obligation will affect the majority of small businesses. Many companies that are organized as an LLC will be affected. This article will provide further information on how LLCs can determine whether or not filing is necessary.

Table of Contents:

  1. What are the BOI reporting requirements for Limited Liability Companies (LLCs)?
  2. Are there any exemptions for LLCs filing the BOI Report?
  3. Is the size of an LLC a factor that qualifies for an exemption?
  4. What are the information required to complete the BOI Report for LLC?
  5. Does LLC have a Beneficial Owner?
  6. Does an LLC have a company applicant?
  7. When should an LLC file its initial BOI report?
  8. How and where does my LLC file its initial BOI report?

1. What are the BOI reporting requirements for Limited Liability Companies (LLCs)?

According to the Corporate Transparency Act (CTA), entities that fall under the “Reporting Company” classification must file a Beneficial Ownership Information Report (BOIR) with FinCEN. As the CTA designates LLCs as Reporting Companies, every LLC established in the United States is required to report the BOIR (BOI Report) unless it qualifies for an exemption. For further information on the reporting requirements of BOI, please visit https://www.taxbandits.com/fincen-boi/boi-reporting-requirements/


2. Are there any exemptions for LLCs filing the BOI Report?

Yes, an LLC can be exempt from filing a BOI report if it meets the exemption criteria. However, it's crucial to note that the majority of LLCs are unlikely to meet these criteria, as exemptions are primarily applicable to entities already subject to government regulations, including public corporations, financial institutions, insurance companies, and
tax-exempt entities.


3. Is the size of an LLC a factor that qualifies for an exemption?

Yes, an LLC can be exempted from reporting the Beneficial Ownership Information Report (BOIR) to FinCEN based on specific criteria related to its size. Exemption eligibility is determined by meeting the following conditions:

  • Having more than 20 full-time employees.
  • Maintaining a physical office within the United States.
  • Submitting a federal income tax or information return for the previous year, revealing gross receipts or sales exceeding $5 million.

4. What are the information required to complete the BOI Report for LLC?

To complete the BOI Report for an LLC, the required information includes the following:

Reporting Company Information:

  • LLC Legal Name
  • Trade name
  • Primary business address
  • The jurisdiction of its formation
  • Taxpayer identification number

For Each Beneficial Owner:

  • Legal name
  • Date of birth
  • Residential address
  • Unique identifier from a driver's license, passport, or state ID, along with an image of the document displaying that identifier

Company Applicant Information (Applicable for LLCs established on or after January 1, 2024):

  • Legal name
  • Date of birth
  • Residential address
  • Unique identifier from a driver's license, passport, or state ID, along with an image of the document displaying that identifier

Click Here to know more about the BOI Filing Instructions.


5. Does LLC have a Beneficial Owner?

Certainly, an LLC does have a beneficial owner. As per the Corporation Transparency Act (CTA), a beneficial owner is an individual who holds substantial control over a reporting company, either directly or indirectly. This entails ownership or control of at least 25 percent of the reporting company's ownership interests.

Any of the individuals who fall under this category are classified as Beneficial owners. Even when no single individual owns a quarter of the LLC, one or more individuals will still have the capacity to make crucial decisions for the LLC or exert significant control over its operations.


6. Does an LLC have a company applicant?

LLCs established on or after January 2024 are required to report the details of the company applicant in the BOIR. A Company Applicant refers to an individual or entity responsible for filing entity formation documents with state authorities, Indian tribes, or other U.S. jurisdictions.

An LLC may have a maximum of two company applicants. If more than two individuals or entities are responsible for filing entity creation documents, the individual primarily responsible for overseeing or managing the filing process becomes the designated company applicant.


7. When should an LLC file its initial BOI report?

Your LLC can submit its initial BOI report according to the following timelines:

LLCs established prior to January 1, 2024:

  • The initial report must be submitted by January 1, 2025.

LLCs founded between January 1, 2024, and January 1, 2025:

  • The initial report must be filed within 90 calendar days upon receiving official or public notice of
    their establishment.

LLCs established on or after January 1, 2025:

  • Required to submit their initial report within 30 calendar days of receiving official or public notice of
    their formation.

8. How and where does my LLC file its initial BOI report?

The filing requirements for your LLC's initial BOI report can vary depending on the jurisdiction in which your Limited Liability Company (LLC) is registered. Fulfilling your LLC's initial BOI reporting requirements is critical to running a compliant small business. If you avoid your reporting obligations, you could look at thousands of dollars in fines and potential criminal penalties. To overcome these hefty penalties you need a trustable provider who can help you through every step of the process of your LLC filing of its BOI report and ensure your report is filed correctly. Here’s where TaxBandits comes in!

TaxBandits Streamlines Your LLC BOI Filing with Efficient Features

  • Complete your BOI Report in minutes with TaxBandits’ intuitive application.
  • Easily complete and submit initial and updated BOI Reports.
  • Amend your BOI Report at no additional costs within 7 days of the submission date.
  • After filing the BOI Report, TaxBandits will continue to send you status notifications about its status.

LLCs choose TaxBandits for a BOI Reporting solution that is smooth, secure, and efficient!

Stephanie

About the Author

Stephanie Glanville is the Marketing Manager of TaxBandits. She has several years of experience with IRS tax forms and the funtionality of TaxBandits. With a passion to help business owners better understand their IRS tax forms and filing, she aims to create content that is valuable and informative.

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