Beneficial Ownership Information...BOI. If you own an LLC or business, chances are you have heard about this new requirement. If you haven't, now is the time to learn more about what you might be required to do!
First, make sure you check out the Financial Crimes Enforcement Network (FinCen) website dedicated to BOI. That can be found at: Beneficial Ownership Information Reporting | FinCEN.gov
Next, who needs to file and by when? If you have filed articles of incorporation or other entity-forming paperwork with a Department of State, chances are you need to file. This includes
LLCs
S-Corporations
C-Corporations
Limited Liability Partnerships
If you have created an official business entity, chances are you need to file. However, there are some exemptions for businesses in fields that are highly regulated by the government already: banks, credit unions, investment companies, and accounting firms are generally exempt (though may still file if they choose).
For businesses created prior to January 1, 2024, the deadline for initial filing is January 1, 2025. For businesses created after January 1, 2024 but before January 1, 2025, filing must be done within 90 calendar days of the official creation of the business. For businesses created after January 1, 2025, initial filing must be done within 30 calendar days of the official creation of the business. If there is any change to the business information or to the beneficial owners, a new filing must be done within 30 days of that change. If you have a side hustle that gets reported on Schedule C but have not registered a business with your state or have an EIN, you do not need to file.
If you've gotten this far, your entity is probably required to file - congrats! So what is BOI? BOI is a byproduct of the Corporate Transparency Act (CTA) and is intended to provide greater transparency (both regulatory and public) with regards to all businesses. From money laundering to fraud, shell companies have been used in the past to conceal the identities of folks doing business. Have you ever bought a house from or sold a house to an LLC but had no clue who was behind it? The purpose of the CTA, and BOI by extension, is to provide greater transparency and avoid fraud by knowing who the people behind the business are.
If you have to file, you have a couple of options. Option no.1 is to do it yourself. Go to the BOI website and follow the instructions. If you are even mildly tech-savvy you should have no problem figuring it out. It is free to file. Option no. 2 is to have us (or another firm) file on your behalf. We charge a nominal fee to file everything for you and provide electronic receipts that you are in compliance. If you are interested, reach out to us!
Lastly, check out the following resources so you have all of the information you need:
Comments