FinCEN BOI REPORTS ARE CURRENTLY ON HOLD. WE'LL LET YOU KNOW IF ANYTHING HAPPENS TO CHANGE.

Basics of Beneficial Ownership Information (BOI) Reporting

The Corporate Transparency Act (CTA) requires most U.S. companies to report their beneficial ownership details to FinCEN, including information on individuals who own at least 25% of the entity or exercise significant control.

5/8/20241 min read

For business owners who want a basic understanding of Financial Crimes Enforcement Network FinCEN’s Beneficial Ownership Information (BOI) reporting requirements:

Purpose of BOI Reporting: This new reporting requirement enacted under the Corporate Transparency Act is designed to increase transparency in business ownership, which helps prevent fraud, money laundering, and financial crimes. It asks businesses to share information about who ultimately owns or controls the company.

Who Needs to Report: Most small to medium-sized businesses, such as LLCs and corporations, are required to report unless they’re exempt (e.g., large corporations or companies already heavily regulated). Generally, businesses formed in the U.S. or foreign companies doing business here are expected to comply.

Information Collected: BOI reporting collects basic details about each “beneficial owner,” which typically includes individuals with significant control or ownership interest (like majority shareholders). This information includes full names, addresses, birth dates, and government ID numbers.

Compliance Deadlines: For existing companies formed before January 1, 2024, the deadline for the first BOI report is January 1, 2025. New businesses formed on or after January 1, 2024, must submit their BOI report within 30 days of registration.

Outsourcing BOI Reporting: Since BOI reporting can be complex, many business owners are choosing to hire accountants or compliance specialists to handle it. Your chosen professional can collect the necessary information from you and file the report on your behalf through FinCEN’s secure portal, typically using login.gov.

Ongoing Updates: If there are changes in ownership or control, FinCEN requires updates within 30 days of the change. An outsourced accountant can handle these updates as well.

Overall, BOI reporting is intended to be a simple way to increase transparency. By hiring a professional, you can stay compliant without dealing with the specifics of filing.

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