Beneficial Ownership Information Resources

What is the Beneficial Ownership Information Reporting Rule?

This law creates a reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

Who is a beneficial owner?

A beneficial owner is an individual who either directly or indirectly exercises substantial control over the company, or owns or controls at least 25% of the company.

What are the penalties for not filing your BOI report?

Penalties for violating the BOI reporting requirements include civil penalties of up to $500 per day as well as criminal penalties of up to two years imprisonment and a fine of up to $10,000.

What is the deadline for the BOI report?

Ultimately, companies will need to file their report within 30 days after registering with a secretary of state or similar authority. The current deadline depends when your company was first formed.

What is a Beneficial Ownership Information Report?

A Beneficial Ownership Information Report provides information on the individuals who substantially control or own a business to the Financial Crimes Enforcement Network (FinCEN) as a legal requirement of the Corporate Transparency Act.

What businesses are exempt from the Beneficial Ownership Information Reporting requirement?

Most small businesses are not exempt if they were formed with a secretary of state or similar office. However, the Financial Crimes Enforcement Network has outlined different types of exempt entities such as tax-exempt nonprofit organizations.

Unsure if you’re required to file a BOI Report?

Complete the simple questionnaire in less than three minutes and see if your company might be exempt. There is no personal information required and it costs you nothing!