FinCen BOI Filing

For clients with an existing business or rentals in an LLC:

You may have heard, many companies will be required to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), as required under the Corporate Transparency Act(CTA), by January 1, 2025.

Companies required to report are called reporting companies and are required to report information on their beneficial owners. You are a reporting company if your company is:

1.      A corporation, a limited liability company (LLC), or another entity otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or

2.      A foreign company registered to do business in any U.S. state or Indian tribe by such a filing.

Note: This includes operating a rental house if the property is owned in an LLC

Also:  If you started a new business in 2024, you have 90 days from date of registration to file this form. Starting in 2025, new businesses will need to file this form within 30 days of your registration confirmation.

How to File:

For most of our clients, this will be easy to do once you gather the information about the beneficial owners, i.e., the individuals who ultimately own or control the company. Beneficial owners are those that exercise “substantial control” of a business, for example:

1.     25% ownership or more of a corporation

2.     25% ownership or more of a limited partnership

3.     25% ownership or more of an LLC

4.     Serve as a senior officer of a company

You will need the following for each beneficial owner:

1.     Owners legal name

2.     Residential address

3.     Date of birth

4.     Scanned image of a passport or driver’s license

Then go to https://boiefiling.fincen.gov to report the beneficial owners by January 1, 2025. You do not have to report annually but you must report any changes in ownership within 30 days.

Note: there are stiff penalties for willfully violating the CTA’s reporting requirements.

For additional information, please refer to the BOI Informational Brochure https://www.fincen.gov/sites/default/files/shared/BOI_Informational_Brochure_508C.pdf

And FinCEN’s FAQ’s document at https://www.fincen.gov/boi-faqs.