Under the final regulations, a company must report to the Treasury information about its “beneficial owners”. The final regulations define a beneficial owner as any individual who, directly or indirectly, exercises substantial control over the entity or owns 25% or more of the company. The regulations provide extensive rules on how to determine whether the ownership threshold had been met and on the definition of substantial control. Substantial control includes acting as a senior officer, having substantial influence over important matters of the company and having authority over the removal or appointment of senior officers or a dominant majority of the board of directors,

The company must provide identifying information about EACH of its beneficial owners that own more than 25% of the company including:

• Full legal name
• Date of birth
• Address
• Identifying number, such as a passport or driver’s license 

Additionally, newly formed reporting companies will need to provide the same information about its ‘company applicant’. The final regulations define the company applicant as the person that either (i) files the formation documents or registers the company with the state or country of organization or (ii) is primarily responsible for directing or controlling such filing if more than one individual is involved in the filing of the document. 

Yes, there are 23 types of entities that are exempt from the reporting requirements. Carefully review the qualifying criteria before concluding that your company is exempt.

FinCEN’s Small Entity Compliance Guide includes this table and checklists for each of the 23 exemptions that may help determine whether a company meets an exemption (see Chapter 1.2, “Is my company exempt from the reporting requirements?”).

No, filing your BOI Report is the only requirement needed. However, obtaining a Federal Identifier Number (FIN) is a unique identifier assigned to each beneficial owner whose information is included in a BOI report is highly recommended. It serves as a key link between the individual and their reported ownership interests, enhancing transparency and tracking within the financial system.

• Compliance: Accurate FINs are crucial for fulfilling BOI reporting obligations and ensuring compliance with regulations.
• Data Integrity: Correct FINs maintain the integrity of BOI data, enabling effective analysis and identification of potential risks.
• Enforcement: FinCEN and other agencies rely on accurate FINs to track beneficial ownership information and enforce regulations against financial crimes.

A FinCEN ID offers several benefits:

1. Legal Compliance: Ensures your business follows anti-money laundering regulations and avoids penalties.
2. Credibility: Builds trust with financial institutions, investors, and customers.
3. Easier Financial Transactions: Helps establish banking relationships and facilitates cross-border deals.
4. AML Compliance: Supports anti-money laundering efforts and fraud prevention.
5. Industry Legitimacy: Boosts your reputation in regulated industries like cryptocurrency or money transfer.

In short, it helps your business stay compliant, secure, and trustworthy.

Your information is fully protected with the latest security measures. Our BOI reporting software uses SSL encryption to ensure all data is securely transmitted. We also implement strong password protection to prevent unauthorized access. Additionally, we follow modern security practices to safeguard your data, ensuring it remains confidential and secure at all times.

The company applicant is the individual or entity responsible for submitting the BOI (Beneficial Ownership Information) report on behalf of the company. This person is typically a company executive, officer, or authorized representative who has the legal authority to act on behalf of the company in regulatory matters.

Yes, even if your company is inactive, you are still required to file a BOI report if it meets the reporting requirements. Inactive companies that fall under the regulations must submit their beneficial ownership information to remain compliant with federal law.

In 2024, members or owners of a limited liability company (LLC) are typically classified as beneficial owners under the new rule. As a result, these LLCs are now considered reporting companies and must file the new report with the federal agency, providing basic contact details for both the company and its owners.

This requirement applies to both single-member and multi-member LLCs, all of which must disclose beneficial ownership information in the BOIR.

Staying compliant is essential for maintaining your business’s good standing and avoiding penalties, fines, or even imprisonment. With Compliance Filings, you can easily meet the new beneficial ownership information reporting requirement and other compliance obligations:

• Annual Reports: Guided assistance to complete official filings that keep your business details—like name, address, managers, and more—updated with the state. Filing requirements vary by state.

• Personalized Alerts: Receive notifications about your specific filing requirements and due dates, making compliance easier to manage.

• Amendments: Submit up to two official changes annually with the Secretary of State, such as updating your business name, address, or ownership details.

Filing your FinCEN BOI Report incorrectly can lead to delays or fines. Here are some common mistakes we help you steer clear of:

1. Overlooking Beneficial Owners: All owners must be included in the BOI Report to ensure full compliance.
2. Late Submissions: Stay on track with the 2024 BOI Reporting deadlines to avoid penalties.
3. Incorrect Information: Make sure all entity and ownership details are accurate to prevent errors.
4. Inconsistent Data: Double-check that your reported information aligns with official records.
5. Failure to Update: Update the BOI Report promptly if there are any changes in ownership or company information.
6. Missing Essential Documents: Include all required documents and details to complete your filing correctly.