There is a new reporting requirement for certain business entities, called the Beneficial Ownership Information (BOI) Reporting Rule, to be filed with the U.S. Department of Treasury's Financial Crimes Enforcement Network (or FinCEN) beginning January of 2024. Here are some details to help prepare you for this requirement:
First, is your company a reporting company?
If your company is (a) a corporation (b) a Limited Liability Company (LLC) or (c) filed with a Secretary of State office, then you may be a "domestic reporting company" required to file.
Second, what specific information does your company need to report?
- Full legal name of benefical owner*
- Any ‘trade name’ or ‘doing business as’ name
- Complete U.S. address
- State, Tribal, or foreign jurisdiction of formation
- Internal Revenue Service (IRS) Taxpayer Identification Number (TIN) (including an Employer Identification Number(EIN))
- Copy of current ID
*A beneficial owner is any individual who, directly or indirectly:
- Exercises substantial control over a reporting company; OR
- Owns or controls at least 25 percent of the ownership interests of a reporting company.
Third, when and how should your company file its initial report?
If your company already exists as of January 1, 2024, it must file its initial BOI report by January 1, 2025. If your company is created or registered to do business in the United States after January 1, 2024 but before January 1, 2025, then it must file its initial BOI report within 90 days after receiving actual or public notice that its creation or registration is effective. Companies formed on or after January1, 2025 will have only 30 days to file their intial BOI report.
If your company is required to file a BOI report, you must do so electronically through a secure filing system, such as at www.fincen.gov/boi Instructions and other technical guidance on how to complete the BOI report form will also be availble at this website, including the Small Business Compliance Guide.
For additional assistance, please contact FinCEN at www.fincen.gov/contact
Note that FinCEN’s filing system is currently under development and will not be available until January 1, 2024.