FOR BUSINESS OWNERS

Your trusted partner for navigating the new Beneficial Ownership Information (BOI)
filing requirement

Consequences of NOT filing include fines of $500 per day or up to 2 years in prison.

Understanding BOI & CTA

As of January 1, 2024, the Corporate Transparency Act (CTA) mandates reporting information on "beneficial owners" — the individuals who ultimately control the entity and enjoy over 25% of its economic benefits — to the U.S. Department of the Treasury, Financial Crimes Enforcement Network (FinCEN).

The purpose of the CTA is to assist the government with detecting and penalizing money laundering, tax fraud, and similar illicit financial activities.

We Make It Simple

Beneficial File offers professional guidance to ensure your business stays up to date on the latest reporting requirements, including the seamless filing of a Beneficial Ownership Information (BOI) for your entity.

What is a
Beneficial Owner?

The CTA requires entities to identify and provide personal information about their “beneficial owners,” defined as any individual who:

  1. Exercises substantial control over the entity, or

  2. Owns or controls not less than 25 percent equity in the entity.

Consequently, an individual can be a beneficial owner without being an actual owner, including by being an officer or director of an entity.

Expert Filing Assistance

Navigating an entity's beneficial owners can be intricate due to complex ownership structures or uncertainties surrounding the "substantial control" standard. If you find yourself in that situation, rely on Beneficial File for expert assistance in making a precise determination.

Reporting Deadlines

Entities formed before January 1, 2024 have until December 31, 2024 to file.

Entities formed in 2024 will have 90 days after submitting documentation to a secretary of state or similar authority to report their beneficial owners.

Entities formed in 2025 or thereafter will only have 30 days after submitting documentation to a secretary of state or similar authority to report their beneficial owners.

After filing an initial report, entities must also report changes to information regarding their beneficial owners within 30 days. Accordingly, maintaining compliance with the CTA will not be a one-time event, but will be an ongoing obligation.

Ensure your BOI is Comprehensive & Error-Free

The repercussions for non-compliance with the CTA carry substantial consequences, and meeting the reporting obligations may pose a considerable challenge for business owners.

Penalties for
Not Reporting

The penalties for not complying with the CTA are significant.

Willfully providing false information to FinCEN or failing to report complete information to FinCEN can result in criminal penalties consisting of a fine of up to $10,000 and imprisonment for up to two years as well as civil penalties of up to $500 per day for each day the violation continues.

Contact Us

If you need assistance with complying with the BOI filing under the CTA, we encourage you to contact us in early 2024. The reporting period begins on January 1, 2024.

FAQs

    • Corporations, LLCs, and entities created by submitting documents to state authorities are obligated to report beneficial owners. Exceptions exist for publicly traded companies or those in regulated industries. Most clients are exempt if they have more than 20 employees, reported over $5 million in gross revenue, and maintain a physical U.S. office with an operating presence.

    • A beneficial owner, as per the CTA, is an individual who exercises substantial control over the entity or owns/controls at least 25 percent equity. This includes officers or directors who may not be actual owners.

    • Beneficial File offers professional guidance to ensure your business stays up to date on the latest reporting requirements, including the seamless filing of a Beneficial Ownership Information (BOI) for your entity.

  • After identifying beneficial owners, entities must submit the following key information for each beneficial owner:

    • Full Legal Name: The complete legal name of the beneficial owner.

    • Date of Birth: The birthdate of the beneficial owner.

    • Current Residential or Business Address: The address where the beneficial owner can be contacted.

    • Identification Number: This could be a driver's license number or a passport number.

    • The Nature and Extent of Ownership: Specify the percentage of ownership or control each beneficial owner holds in the reporting company.

    • Beneficial owners can obtain an individual FinCEN identifier, a unique number issued by FinCEN. This identifier streamlines reporting, and Beneficial File can guide individuals through the process.

    • Existing entities must report between January 1, 2024, and December 31, 2024.

    • Entities formed in 2024 have 90 days after submission to report,

    • Entities formed in 2025 or later have 30 days.

    • Ongoing compliance requires reporting changes within 30 days.