FAQS
BOI Reporting Requirements
Welcome to the forefront of business compliance with the Corporate Transparency Act (CTA). In this era of heightened regulatory scrutiny, entities are now mandated to navigate the intricate landscape of reporting requirements, particularly with the introduction of the Beneficial Ownership Information (BOI) filing.
The CTA sets the stage for a transparent business environment by necessitating the disclosure of beneficial ownership details. As the deadline approaches, understanding and fulfilling these reporting obligations become paramount.
At Beneficial File, we stand ready to guide you through the nuances of BOI filing, ensuring your business aligns seamlessly with the CTA's stringent yet crucial regulatory framework.
What information will a reporting company have to report about itself?
A reporting company will have to report:
Its legal name
Any trade names, “doing business as” (d/b/a), or “trading as” (t/a) names
The current street address of its principal place of business if that address is in the United States (for example, a U.S. reporting company’s headquarters), or, for reporting companies whose principal place of business is outside the United States, the current address from which the company conducts business in the United States (for example, a foreign reporting company’s U.S. headquarters)
Its jurisdiction of formation or registration
Its Taxpayer Identification Number (or, if a foreign reporting company has not been issued a TIN, a tax identification number issued by a foreign jurisdiction and the name of the jurisdiction).
A reporting company will also have to indicate whether it is filing an initial report, or a correction or an update of a prior report.
Expert Filing Assistance
Remember, accuracy and completeness are crucial as penalties for non-compliance for non-filing or incomplete filing is $500 per day and up to two years in prison. Make sure to take the time to ensure your BOI is comprehensive and error-free.
What information will a reporting company have to report about its beneficial owners?
For each individual who is a beneficial owner, a reporting company will have to provide:
The individual’s name
Date of birth
Residential address
An identifying number from an acceptable identification document such as a passport or U.S. driver’s license, and the name of the issuing state or jurisdiction of identification document.
The reporting company will also have to report an image of the identification document used to obtain the identifying number in item 4.
What information will a reporting company have to report about its company applicants?
For each individual who is a company applicant, a reporting company will have to provide:
The individual’s name
Date of birth
Address
An identifying number from an acceptable identification document such as a passport or U.S. driver’s license, and the name of the issuing state or jurisdiction of identification document.
The reporting company will also have to report an image of the identification document used to obtain the identifying number in item 4.
If the company applicant works in corporate formation—for example, as an attorney or corporate formation agent—then the reporting company must report the company applicant’s business address. Otherwise, the reporting company must report the company applicant’s residential address.
What penalties do individuals face for violating BOI reporting requirements?
As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues.
That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
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.
When do I have to file an initial beneficial ownership information report with FinCEN?
If your company existed before January 1, 2024, it must file its initial beneficial ownership information report by January 1, 2025.
If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective. Specifically, this 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
If your company was created or registered on or after January 1, 2025, it must file its initial beneficial ownership information report within 30 calendar days after receiving actual or public notice that its creation or registration is effective. The following sets out the initial report timelines.
Contact Us
If you need assistance with complying with the BOI filing under the CTA, we encourage you to contact us in early 2024 by filling out the form below.
The reporting period begins on January 1, 2024.