Under the Corporate Transparency Act (CTA), most small businesses across the United States must file their Beneficial Ownership Information (BOI) Report with FinCEN starting January 1, 2024.

This law was enacted to improve transparency and financial integrity and prevent unauthorized access to information such as money laundering and other similar criminal activities.

Click here to learn more about BOI Filing in detail.

Generally, the following companies are required to complete BOI reporting:

• Domestic Entities - Any domestic business that operates under U.S. tax laws. This includes corporations, LLCs, limited partnerships, and limited liability partnerships (LLPs).
• Foreign Entities - Any entities that are established outside the United States and conduct business in the U.S.

The deadline to file a BOI report is based on your company's establishment date.

• Existing reporting companies created or registered before January 1, 2024, must file their BOI reports by January 1, 2025.
• Companies created or registered to do business in the United States on or after January 1, 2024, must file their BOI reports within 90 calendar days.
• Companies created or registered to do business in the United States on or after January 1, 2025, must file their BOI reports within 30 calendar days.
• Companies are required to file update or correct BOI reports within 30 days of any changes to their company information or beneficial owners.

Use our FREE BOIR Due Date Calculator to find the due date for your business.

Primarily, you’ll need the following information to complete your BOI report.

• Reporting company details such as Name, EIN, Address, etc.
• Type of the report (Initial, Update, Correct or Newly Exempt Entity)
• Information about the Beneficial Owners (Name, Date of Birth, Address and Identity Proof)
• Details of the Company Applicant(s) (Name, Date of Birth, Address and Identity Proof)

Visit https://www.taxbandits.com/fincen-boi/boi-instructions/ to learn more about BOI filing Instructions.

According to FinCEN, beneficial owners can be

• Any individual or entity who has substantial control over a reporting company or
• An individual or entity that owns or controls more than 25% of the ownership interest over a reporting company, either directly or indirectly.

Click here to learn more about the beneficial owner(s) of a company.

A company applicant is a person responsible for preparing and filing the documents with the secretary of state or with a similar office to register the reporting company. A reporting company can have up to two company applicants. If more than one person is involved in the filing process, the primary person can be considered a designated company applicant.

Click here to learn more about the company applicants of a reporting company.

Failure to file BOI reporting requirements on time may result in potential penalties from the FinCEN department.

Civil penalties can range up to $591 per day. Additionally, there may be criminal penalties, including a fine amount of up to $10,000 and imprisonment for up to two years.

To learn more about BOI Reporting Penalties, click here.