As part of our ongoing effort to inform you about Beneficial Ownership Information (BOI) Reporting, we are providing a step-by-step guide this week on determining whether your company must file a BOI report. Although our Firm does not directly handle BOI filings, we are committed to informing you of these important updates.

Step-by-Step Guide: Identifying Your BOI Reporting Obligations

What is the BOI Report?

The Beneficial Ownership Information (BOI) Report, required under the Corporate Transparency Act (CTA), mandates that businesses disclose details about individuals who own or control the company. This helps enhance transparency and combat illicit financial activities such as money laundering and fraud.

Does Your Company Need to Report?

BOI reporting is required for many business types, including corporations, LLCs, and similar entities. Some organizations, such as publicly traded companies and government agencies, are exempt. The first step is determining whether your business falls into the reporting category.

Filing Deadlines

• For companies formed before January 1, 2024, the initial BOI report must be submitted by January 1, 2025.
• For companies created on or after January 1, 2024, the BOI report is due within 30 days of formation.

Missing these deadlines can result in penalties, so acting promptly is essential.

Identifying Beneficial Owners

A beneficial owner is anyone who directly or indirectly owns 25% or more of the company or exercises significant decision-making power. This includes executives, shareholders, or individuals with substantial influence.

Who Qualifies as a Beneficial Owner?

Beneficial owners are individuals who:

• Own 25% or more of the company's interests.
• Exercise substantial control over the company's operations.
• May hold indirect ownership through other entities or legal arrangements.

Understanding who qualifies as a beneficial owner is key for BOI compliance.

Need More Information?

FinCEN has published a comprehensive FAQ document to assist businesses in navigating BOI reporting rules.

👉 Check out the BOI FAQs here.

Again, while we're not handling BOI filings directly, we're committed to keeping you informed about these critical updates and deadlines. Next week, we'll share insights on why timely filing is critical, best practices for compliance, and key deadlines.

For further details, please refer to FinCEN's National Brochure. If you have any questions, feel free to reach out!