Effective January 1, 2024, businesses that are defined as an eligible reporting company are now required to comply with Beneficial Ownership Information (BOI) reporting. This reporting obligation is required by the Financials Crimes Enforcement Network (FinCEN) which is a part of the U.S. Department of the Treasury. Note this is not a tax requirement or a tax filing however the fees for noncompliance can be detrimental to your business.

Information to include in the filing:

1. List all beneficial owners’ full legal names. A beneficial owner is defined as any individual who directly or indirectly has substantial control of the company or owns at least 25% of the ownership interests.
2. Date of Birth
3. Complete Current Address
4. Identification number and a current picture of the identification document. Examples include a driver’s license or passport.

Reporting Company information

1. Entity full legal name
2. Trade names or DBA names
3. Complete current business address
4. State or jurisdiction of formation
5. IRS taxpayer identification number

In most cases this is a one-time filing, and you will not be required to file again unless the business information substantially changes. Businesses who do not comply with the reporting obligations may face civil penalties up to $500 per day that a violation continues. Criminal penalties include a $10,000 fine and/or up to two years of imprisonment. If a report is filed that contains mistakes or an omission of information, you can correct the report within 90 days to avoid penalties.

Reporting due dates are dependent on when the eligible reporting company was created.

• Company was/is established prior to January 1, 2024, the company must file their initial BOI report by January 1, 2025.
• Company was/is established on/or after January 1, 2024, and before January 1, 2025, the company must file their initial BOI report within 90 days from formation.
• Company was/is established 2025 or later, the company must file their initial BOI report within 30 days from formation.

FinCEN has provided general information to assist business owners with these new filing requirements.

Website to file the report: https://boiefiling.fincen.gov/

FAQs https://www.fincen.gov/boi-faqs

Small Entity Compliance Guide https://www.fincen.gov/boi/small-entity-compliance-guide