If you own or manage a business, there’s a crucial compliance deadline you need to meet by year-end: submitting your Beneficial Ownership Information (BOI) report to FinCEN, the Financial Crimes Enforcement Network under the U.S. Department of Treasury.
This reporting requirement stems from the Corporate Transparency Act (CTA), which was enacted to increase transparency in business ownership and combat financial crimes like money laundering and tax evasion.
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA) is a landmark piece of legislation passed by Congress in January 2021 as part of the National Defense Authorization Act. Its primary goal is to combat financial crimes such as money laundering, tax evasion, and fraud by increasing transparency in business ownership across the United States.
The CTA requires most businesses to disclose information about their “beneficial owners”—the individuals who own or control the company. This creates a centralized database of ownership information managed by the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury.
You can find our full FAQ page about the Corporate Transparency Act here.
What is a BOI Report?
A Beneficial Ownership Information (BOI) report is a document required by the Corporate Transparency Act (CTA) that provides detailed information about the individuals who own or control a business.
For more details about the Corporate Transparency Act (CTA) and BOI Reports, visit FinCEN’s FAQ page here.
Who Needs to File a BOI Report?
Most U.S. corporations and LLCs are required to file a BOI Report, but there are a few exceptions.
You may not need to file if your business meets all three of the following criteria:
- You have 20+ employees.
- Your gross receipts exceed $5 million.
- Your business has a physical office in the U.S.
Other entities, such as publicly traded companies, banks, credit unions, SEC-reporting businesses, and certain nonprofits, are also exempt.
If you think your business may be exempt, please review FinCEN’s exemption criteria here.
Important: If your business doesn’t meet any of these exemption criteria, filing is mandatory, regardless of whether it’s a new company or one that’s been operating for years. Not sure if you’re required to file? Review the CTA requirements or consult a legal expert.
Key Elements of a BOI Report
Here’s what you’ll need to provide:
Company Information:
- Legal name and any trade names (DBAs).
- Company address.
- Registration location (U.S. or foreign).
- Taxpayer ID number.
For Beneficial Owners and Company Applicants (Company Applicants applicable to businesses formed after January 1, 2024):
- Full legal name.
- Birthdate.
- Residential address.
- ID information from an approved document (e.g., driver’s license or passport), along with a copy of the document.
Deadlines for Filing
Your deadline depends on when your business was formed:
- Before January 1, 2024: File by January 1, 2025.
- On or after January 1, 2024: File within 90 days of forming or registering the business.
Why Compliance Matters
Failing to file can lead to significant penalties, including fines of up to $591 per day or criminal charges. If your business doesn’t meet the exemption criteria, filing your BOI Report is not optional.
How to File Your BOI Report
You can submit your report through FinCEN’s online filing system or upload a PDF version on the FinCEN website here.
Need guidance or want to feel sure that your BOI Report is complete and correct? URA has partnered with FileForms, a third-party service that simplifies the process. This can be particularly helpful if multiple beneficial owners need to submit their personal details separately. Get started with FileForms here.
Stay on Top of Compliance
Gathering the required information and submitting your report may take some effort, but it’s a small investment to avoid costly penalties. Staying compliant ensures your business remains in good standing and helps you avoid unnecessary stress in the future.
Take action now to save yourself time and trouble later—your future self will thank you!
