Under the Corporate Transparency Act, most business owners must file a Beneficial Ownership Information Report (BOIR). This report is due by January 1, 2025.
Below is a summary of key information pertaining to your filing:
- Reason for the filing. In 2021, Congress passed the Corporate Transparency Act which created a “new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.” Filing your BOI report is required to comply with this legislation.
- Who needs to file. This requirement applies to most companies doing business in the US, including corporations, limited liability companies (LLCs), and any other business entity created by the filing of a document with the secretary of state. Certain large companies are exempt. A sole proprietorship only needs to file if it was created through a filing with the secretary of state.
- What “beneficial ownership” information needs to be filed. Your company must file information about the “beneficial owners” of the company. A beneficial owner is an individual who owns or controls at least 25% of a company, or who exercises substantial control of the company (e.g. president, chief financial officer, general counsel, etc.). The report will include the following information about that individual:
- Full Legal Name
- Date of Birth
- Residential Address
- Identifying number and other information from a passport or U.S. driver’s license
- When to file. New companies started this year must file within 90 days of their creation. All other reporting companies must file by January 1, 2025. This is a one-time filing requirement so you will not need to file on an annual basis.
- Where/How to file. To file the report on your own, go to FinCen’s BOIR Filing website, select “File BOIR,” and follow the instructions.
For more information, go to Financial Crimes Enforcement Network BOI Homepage.