New Beneficial Ownership Information (BOI) Reporting Requirement: What You Need to Know

Starting January 1, 2024, a new Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA) goes into effect. This regulation, managed by the Financial Crimes Enforcement Network (FinCEN), aims to combat illicit financial activities by identifying the individuals who ultimately own or control certain entities.

With an estimated 32.6 million businesses impacted, including smaller entities like single-member LLCs, there’s understandable confusion about what these changes mean. But don’t worry—we’re here to clarify the details and help you navigate compliance.

Who Needs to File?

Most domestic corporations, LLCs, and other entities created by filing with a secretary of state or tribal office are required to comply. The requirement also extends to foreign entities registered to do business in the U.S.

However, there are 23 categories of exemptions, such as:

• Publicly traded companies
• Certain large operating entities
• Tax-exempt organizations
• Banks

Check out our FAQs for more details about exemptions and specifics.

Key Deadlines:

• Existing entities formed before January 1, 2024, must file their BOI report by January 1, 2025.
• New entities formed after January 1, 2024, must file within 90 days of their creation.
• Any changes to beneficial ownership details must be reported within 30 days of the change.

What Information Must Be Included In A BOI Report?

The BOI report must include the following details about the reporting company:

• Legal name of the entity
• Trade name (Doing Business As, if applicable)
• Business address
• Jurisdiction of formation
• IRS taxpayer identification number (TIN)

For each beneficial owner (someone who owns or controls at least 25% of a company or exercises significant control), the following information is required:

• Full name
• Date of birth
• Address
• Unique identification number from a government-issued ID (e.g., passport or driver’s license)
• An image of the identification document

Important Note: Unlike other filings, BOI reports do not need to be submitted annually. However, it is critical to update your report within 30 days of any changes to ensure accuracy and compliance.

Risks of Non-Compliance

Non-compliance carries serious penalties, including fines of $500 per day for each violation and criminal penalties of up to $10,000 or two years in prison. Avoiding these penalties requires timely and accurate filing of your BOI report with FinCEN.

How BNA Can Help

At BNA, we’re here to assist with your BOI filing needs. While this service isn’t part of our standard engagement, we are offering a BOI filing service for an initial fee of $500 per entity.

To have us assist with your BOI filing, simply click the ‘Request Filing’ button below, and we’ll get in touch with the next steps.

Stay Informed

For further details, check out our BOI FAQs or reach out to our team for personalized assistance.