Required Beneficial Ownership Information Reporting for FinCEN

file boI report

The Corporate Transparency Act (CTA) was enacted as part of the National Defense Authorization Act which aims to combat money laundering, terrorist financing, and other illicit activities by requiring certain entities to disclose their ownership information to the Financial Crimes Enforcement Network (FinCEN) by filing a Beneficial Ownership Information reporting (BOI). This act has steep penalties for noncompliance so we at Artica Financial Services want to ensure clear information goes out to our clients regarding:

  • Who has to file
  • The initial reporting deadline
  • The info you need to file and how to file
  • Penalties

So let’s get started.

Who has to file

If your business is any of the following:

  •  limited liability partnership (LLP)
  • single member limited liability corporation (LLC)
  • multimember limited liability corporation (MMLLC)
  • any type of corporation

You are required to submit a Beneficial Ownership Information (BOI) filing for each company that falls under the above guidelines. So if you have an LLC for your business and one for you rental property you will have to file two separate BOI filings. There are 23 types of business that are exempt from having to file. Take a look at FinCENs commonly asked questions (FAQs) page for more information.

Initial reporting deadline

If you’re still reading then you have probably come to the conclusion that you need to file a Beneficial Ownership Information (BOI) reporting with FinCEN. The following are the deadlines for filing based upon when your company was created.

  • Company created prior to 2024 then the reporting deadline is January 1, 2025
  • Company created during 2024 then the reporting has to be done within 90 days of company creation filing
  • Company created after 2024 then the reporting needs to be completed within 30 days of company creation filing

How to file

Step 1: Gather the needed information on the company, company owner(s), and the person that initially formed the company:

Company info:

  • Company’s legal name
  • Company’s tax ID number (EIN, SSN, etc)
  • State/country the company was formed
  • Company’s address

Beneficial company owner(s) – exercises substantial control or owns at least 25%  

  • Full name
  • Date of birth
  • Home address
  • Driver’s license ID, state ID, or US passport ID
  • Photo image of the ID

Company filing applicant – person who physically or electronically filed the documents with the state office to create the company

  • Full name
  • Date of birth
  • Home address
  • Driver’s license, state ID, or US passport number
  • Photo image of the ID

Step 2: Access FinCEN’s reporting system. Select ‘File a report using the BOI E-filing system’ to begin. Then go to ‘File BOIR’.

Step 3: Complete the report using the data gathered in Step 1. There are three sections to complete the report, plus an introductory page and submission page. Section 1 asks you to provide information about the company. Section 2 & 3 asks you to provide information for the beneficial owners of the company and the company’s original creation filing applicant.

Step 4: Review and submit

Step 5: Maintain Compliance by updating FinCEN within 30 days of when any of information in Step 1 changes. There are no annual reporting requirements at this time.

Penalties

Keep in mind that the companies that provide false information, fail to submit a report, or fail to keep the report updated can be subject to civil penalties of up to $500 for each day the violation isn’t corrected and criminal penalties of up to $10,000 and 2 years in prison. If you’d like a detailed guide then Financial Crimes Enforcement Network (FinCEN) has created a compliance guide.