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Starting January 1, 2024, many businesses in the United States must file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). If you’re a business owner, it’s essential to understand these new requirements, who they apply to, and how to comply. This guide will help you navigate the BOI filing process and avoid potential penalties.
Who Must File the BOI Report?
The BOI filing requirements apply to reporting companies, which include corporations, limited liability companies, and certain foreign companies registered to do business in any state. However, there are 23 exemptions, such as banks, credit unions, and large operating companies. To qualify as a large operating company, the business must employ over 20 full-time employees, earn more than $5 million in gross receipts, and operate from a physical office within the United States.
When to File the BOI Report?
Reporting companies formed before January 1, 2024: File the report between January 2024 and January 1, 2025.
Reporting companies formed after January 1, 2024: File the initial report within 30 calendar days of the registration becoming effective.
Updates and corrections: File an updated report within 30 calendar days after any changes in the previously reported information.
What Information to Include in the BOI Report?
The BOI report requires information about the reporting company, its beneficial owners, and the company applicant. Beneficial owners are individuals who own or control more than 25% of the company or exercise substantial control over it. The company applicant is the individual who prepares and files the documents to create or register the reporting company.
Where to File the BOI Report?
The reports will be filed through a portal at www.fincen.gov starting January 1, 2024. FinCEN will provide further information about accessing and using the portal as the date approaches.
Don’t wait until the last minute to prepare for these new FinCEN requirements. Click Here to schedule an appointment with Focus Law today to ensure your business stays compliant and avoids penalties.
