What is BOI Reporting and Why Should You Care?

What is BOI Reporting?

BOI stands for Beneficial Ownership Information, a new reporting requirement aimed at increasing transparency in business ownership. It’s designed to help prevent fraud, money laundering, and other shady activities.

What’s Required?

You’ll need to identify your beneficial owners—the people who own or control at least 25% of your business. Gather their name, address, date of birth, and a government-issued ID number. Then, file the report with FinCEN (the Financial Crimes Enforcement Network – an official bureau of the U.S. Department of the Treasury).

Why was BOI Reporting Created?

According to the FinCEN website, “In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information 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 Needs to File?

If you own or control a small business, LLC, or similar entity, chances are BOI reporting applies to you. Big corporations and publicly traded companies are typically exempt, but smaller entities? You’re on the hook.

When’s the Deadline?

According to the FinCEN website, “A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.”

If your business was created or registered in 2024, your deadline is different. The FinCEN website says, “A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. 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.”

UPDATE: As of December 23, 2024, the BOI reporting requirements have been upheld by federal courts and deadlines have been extended. 

Revised Deadlines for BOI Reporting:

For companies created or registered before January 1, 2024, the deadline to file initial beneficial ownership reports has been extended to January 13, 2025. Originally, these companies were required to report by January 1, 2025.

For entities established on or after September 4, 2024, with deadlines between December 3, 2024, and December 23, 2024, the filing deadline is also extended to January 13, 2025.

Companies created between December 3, 2024, and December 23, 2024, now have an additional 21 days from their original deadlines to submit their reports.

Entities eligible for disaster relief may benefit from further extensions, and they should comply with whichever deadline is later.

For new companies created or registered after January 1, 2025, the deadline is set to 30 days from receiving either actual or public notice of their effective creation or registration.

Source: Forbes.com, “Beneficial Ownership Reporting Deadlines Reinstated, Extended” (December 24, 2024)

Why Should You Care?

Failing to file or filing late could lead to financial fines or penalties. Besides staying compliant with federal law, BOI reporting protects your business and strengthens the fight against financial crimes. It’s one small step for you, but a big leap for business integrity.

Ready to File Your BOI?

For more information and to file your BOI report using the BOI e-filing system, visit https://www.fincen.gov/boi >

UPDATE: Before you begin your report, here is the information you’ll need:

• Business Tax ID – i.e. your business EIN (Employer Identification Number) or your social security number
• Business name and address
• Each owner’s name, residential address, and Driver’s License number
• An image of the front of each owner’s driver’s license, to upload with your report