Beneficial Ownership Information (BOI): A Guide for Business Owners

As a business owner, you’re likely familiar with the complexities of regulatory compliance. One crucial requirement is the Beneficial Ownership Information (BOI) reporting mandate. In this blog, we’ll break down BOI in simple terms, covering key aspects and providing guidance on how to ensure compliance.

What is Beneficial Ownership Information (BOI)?

• Beneficial owners: Individuals with at least 25% ownership or control.

• Senior officers: Key decision-makers, such as CEOs or presidents.

Why is BOI Reporting Required?

• Combat financial crimes: Identify and track suspicious activities.

• Enhance national security: Prevent shell companies from hiding illicit funds.

Who Needs to Report BOI?

• Domestic reporting companies: Corporations, LLCs, and entities created in the US.

• Foreign reporting companies: Entities formed outside the US but registered to do business in the US.

Exemptions

• Publicly traded companies

• Nonprofits

• Large operating companies (>$5M revenue)

What Information Must be Reported?

• Company details: Legal name, trade names, principal place of business, jurisdiction of formation, and Taxpayer ID.

• Beneficial owner info: Name, date of birth, residential address, and identifying document.

Key Deadlines

• Existing entities: File by December 31, 2024.

• New entities: File within 90 days of formation.

Penalties for Non-Compliance

• Civil penalties: Up to $500/day.

• Criminal penalties: Up to 2 years imprisonment and $10,000 fine.

Get Expert Guidance

• Answer questions

• Provide guidance

• Streamline BOI reporting

Additional Resources:

• FinCEN Website

• Beneficial Ownership Information Summary