beneficial ownership information reporting

FinCEN (Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury that combats financial crimes, including money laundering and terrorist financing. An agency that regulates financial crimes.

The BOI (Beneficial Ownership Information) Report is a report that companies must submit to FinCEN, detailing the individuals who own or control the company, to increase transparency and prevent financial crimes.

(This is a new filing, began in 2024)

Most U.S. corporations, LLCs, and similar entities must file a BOI report with FinCEN.

Certain regulated entities, such as publicly traded companies, financial institutions, and large operating companies, are exempt from filing a BOI report.

Failing to file the BOI report on time can result in civil penalties of up to $500 per day and criminal penalties, including fines up to $10,000 and imprisonment for up to two years.

• Reporting companies created or registered before January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)

• Reporting companies created or registered on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.

• Reporting companies created or registered on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.

• Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.

• Reporting companies that are created or registered on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.

Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

To file the BOI report, you’ll need the owner’s name, address, birthdate, a state ID or federal ID (such as a passport), and details about the company, including its EIN (Employer Identification Number).

No, the BOI report does not need to be filed annually, but updates are required within 30 days of any changes to the reported information.