Beneficial Ownership Information Report: What is it?

Recently, it became mandatory for all the beneficial owners of American companies to report information about themselves to the FinCEN. Let’s cover all the basics you need to know about this new type of reporting.

What is beneficial ownership information (BOI)?

BOI refers to identifying information about individuals who directly or indirectly own or control a company.

The Reporting Rule requires certain organizations to file Beneficial Ownership Information (BOI) reports with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Who is the beneficial owner of the reporting company?

A beneficial owner is an individual who, directly or indirectly, (1) exercises significant control over the reporting company or (2) owns or controls at least a 25% ownership interest in the reporting company.

Which companies will be required to report beneficial ownership information to FinCEN?

There are two types of reporting companies:

• Domestic companies are corporations, limited liability companies (LLCs), and any other entity created by filing a document with the Secretary of State or any similar office in the United States.
• Foreign companies are entities (including corporations and limited liability companies) created under the laws of another state that have registered to do business in the United States.

When do you have to file a report?

• Reports will be accepted beginning January 1, 2024.
• Reporting companies created or registered to do business before January 1, 2024 will have additional time, until January 1, 2025, to file their initial BOI reports.
• Reporting companies formed or incorporated on or after January 1, 2024 will have 30 days after receiving notice of their company’s formation or incorporation to file their initial BOI reports. 

Starting January 1, 2024, BOI reports must be filed electronically.

Don’t forget to report this because if you don’t you will face hundreds of dollars per day fines. We can help you with filing such a report, so if you have any trouble, please don’t hesitate to reach out using the “Contact Us” button of this website. See you!