Beneficial Ownership Information (BOI) Reporting Rule Explained
As of January 1, 2024, most companies created or registered to do business in the United States must report their Beneficial Ownership Information (BOI) to FinCEN.
This rule was put in place 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.
Below are the reporting requirements for BOI, and everything else you need to know about this new ruling.
- What is Beneficial Ownership Information (BOI)?
Beneficial Ownership Information refers to identifying any individual who, directly or indirectly, either exercises substantial control over a reporting company, or owns or controls at least 25% of the ownership interests of a reporting company.
- Who is required to FILE?
Reporting companies required to file include a domestic or foreign corporation, limited liability company, or similar entity that was either formed or registered to do business in any state or jurisdiction by filing a document with a secretary of state or other similar office and which does not qualify for an exemption.
- When is the DEADLINE for filing BOI reports?
Reporting companies created or registered:
- BEFORE January 1, 2024, must file by January 1, 2025
- AFTER January 1, 2024, must file within 90 days
- What information is to be REPORTED?
The reporting company must provide identification information about itself and its beneficial owners.
Reporting Company Details:
- Entity’s Legal Name, or D/B/A Names
- Federal Taxpayer ID Number
- Primary Address
- State of Formation
- Type of Report Being Filed: initial, updated or corrected report
Reporting Owner Details
- Full Legal Name
- Date of Birth
- Residential Address
- Unique ID Number from Driver’s License/Passport
- Image/Scanned Copy of the Document
- Who is EXEMPT from reporting?
The main category of businesses that will be exempt from filing a Beneficial Owner Information Report are “large operating companies.”
- Reports more than $5 million in gross sales or receipts in the previous tax year
- Publicly traded companies that have been registered under Section 102 of SOX
- Employs more than 20 full-time employees, who work an average of 30 hours per week
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