BOI Reporting Requirement is Back – What Businesses Need to Know
After much back and forth, the Financial Crimes Enforcement Network (FinCEN) has officially confirmed that the Beneficial Ownership Information (BOI) reporting requirement is back in effect. Businesses that meet the criteria must comply and file their BOI reports by March 21, 2025.
This change comes after legal challenges briefly paused the rule, leaving many businesses uncertain about their obligations. Now that FinCEN has reaffirmed the requirement, it's crucial for business owners to understand whether they need to file and how to stay compliant.
What is BOI Reporting?
BOI reporting is a federal requirement under the Corporate Transparency Act (CTA), designed to prevent financial crimes such as money laundering, fraud, and tax evasion. It requires certain businesses to disclose information about their beneficial owners—the individuals who ultimately own or control the company.
The information collected is maintained by FinCEN and is not publicly available. However, it may be shared with law enforcement agencies, financial institutions, and other authorized parties to combat illicit financial activity.
Who Needs to File a BOI Report?
BOI reporting applies to "reporting companies", which include:
- Corporations, LLCs, and similar entities created by filing documents with a state or tribal authority.
- Foreign companies registered to do business in the U.S. through a state or tribal filing.
However, some businesses are exempt from reporting, such as:
- Large operating companies (those with more than 20 full-time U.S. employees, over $5 million in gross receipts, and a physical U.S. presence).
- Certain regulated entities, including banks, credit unions, insurance companies, and publicly traded companies.
- Inactive entities that meet specific criteria.
If you're unsure whether your business needs to file, it's important to seek guidance to avoid noncompliance.
What Information is Required?
If your company must file a BOI report, you will need to provide:
Company details (legal name, DBA name, address, formation jurisdiction, and EIN).
Beneficial owner information (name, date of birth, address, and a government-issued ID).
Company applicant details (for companies formed after January 1, 2024).
What is the Deadline to File?
Businesses must comply by March 21, 2025. For new companies formed after January 1, 2024, the report is due within 90 days of formation.
How We Can Help
Not sure if your business needs to file? We can help you determine whether your business needs to file, ensure your report is accurate, and submit it on time to avoid potential penalties.
If you have any questions or need assistance with BOI compliance, contact us today to get started.