Understanding the BOI Report

Our Impact Team
Dec 9, 2024
3 min read

With 2024 in full swing, businesses and individuals need to stay on top of regulatory requirements, including the BOI Report. Filing correctly and on time can save you from headaches, fines, and complications later on. In this blog post, we'll explore who needs to file the BOI Report, what information is required, and provide some tips on how to streamline the process while avoiding penalties.

What is the BOI Report?

The BOI (Beneficial Ownership Information) Report is a filing requirement mandated to provide transparency about the individuals who ultimately control or benefit from a business entity. It’s part of efforts to combat financial crimes like money laundering, tax evasion, and fraud.

Who Needs to File the BOI Report?

As of 2024, the BOI Report must be filed by:

Corporations, Limited Liability Companies (LLCs), and Other Legal Entities: Almost all business entities formed in the United States or registered to do business here are required to report their beneficial ownership information. This includes newly formed entities and existing ones.
Exemptions: Certain entities, such as publicly traded companies, large operating companies with more than 20 full-time employees, and those generating significant annual revenues, may be exempt from this requirement.

Where To File?

Visit the Financial Crimes Enforcement Network's website for up-to-date information on filing your BOI Report. Keep in mind, filing your BOI Report is free—don’t be misled by anyone claiming otherwise!

Do You Qualify for an Exemption?

Check here if you are exempt from filing a BOI Report.

Do You Qualify for an Extension?

In light of recent events, FinCEN has announced filing deadline extensions for BOI reports. These extensions apply to certain reporting companies affected by Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine. Make sure to review the notices to see if your company qualifies.

Check BOI Newsroom and refer to the applicable Notice for specific information.

How to File BOI Report?

To properly file the BOI Report, you will need to provide:

Entity Information: The legal name, address, state of formation, and Employer Identification Number (EIN) of the reporting entity.
Beneficial Owner Information: Details about the beneficial owners of the entity, including:
- Full Legal Name: Ensure it matches the identification documents.
- Date of Birth: Required for each beneficial owner.
- Residential Address: The residential address of each owner.
- Identification Document: Details from a government-issued photo ID (e.g., driver’s license or passport), including the document number and issuing country.

A beneficial owner is defined as any individual who directly or indirectly owns or controls 25% or more of the entity, or who exercises substantial control over it.

Here are the general steps you would typically follow, based on standard practices for such filings:

Visit the FinCEN Website: File a report by using the BOI E-Filing System
Register for Access: If required, you may need to register for an account on the FinCEN portal or system designated for BOI filing.
Prepare Required Information: Gather all necessary information about your entity and its beneficial owners, as outlined in the reporting requirements.
Complete the Form: Fill out the BOI report form digitally through the FinCEN's designated filing system.
Submit the Form: After ensuring all information is accurate and complete, submit the form via the online system.
Keep Records: Always keep a copy of the filed report and any confirmation or receipt provided post-submission for your records.

Filing Deadlines and Penalties for Non-Compliance

Filing the BOI Report accurately and on time is crucial to avoid penalties. Here are some important points to consider:

Filing Deadlines: Most existing entities have until the end of 2024 to submit their first BOI Report, while newly formed entities must file within 30 days of formation.
Penalties: Failure to file the BOI Report or submitting incorrect information can lead to substantial fines, which may amount to $500 per day for late or incomplete filings. In severe cases, criminal penalties may also apply.

Final Thoughts: The BOI Report is an important filing requirement that adds transparency to business ownership in the United States. As we progress through 2024, staying compliant with these requirements will help you avoid penalties and ensure your business is in good standing. By understanding who needs to file, what information is required, and how to make the filing process smoother, you can save yourself from unnecessary stress.

How We Can Help: If you're feeling uncertain about filing or simply want extra assurance, don't hesitate to seek professional help. Staying informed and proactive can make all the difference. Contact our Impact Team to get personalized assistance tailored to your specific needs.

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