Business Ownership Information Report
Understand the requirements, prepare and take the next steps for compliance.
Starting this year, most legal entities must report their Beneficial Ownership Information (BOI).
The BOI Report, mandated by the Corporate Transparency Act (CTA), requires certain companies to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who ultimately own or control 25% or more of the company's ownership interests or voting power.
Who Needs to File a BOI Report?
The rule identifies domestic and foreign as the two types of reporting companies that must file a report.
Domestic reporting company: a Corporation, Limited Liability Company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe.
Foreign reporting company: a Corporation, LLC, or other entity formed under the law of a foreign country that is registered to do business in any state or tribal jurisdiction by the filing of a document with a secretary of state or any similar office. Under the rule, and in keeping with the CTA, twenty-three types of entities are exempt from the definition of “reporting company.”
FinCEN expects that these definitions will also include:
Limited Liability Partnerships
Limited Liability Limited Partnerships
Business Trusts
Most Limited Partnerships
The requirement applies to companies formed or registered in the US:
Before January 1, 2024: Must file by January 1, 2025.
On or after January 1, 2024: Must file within 90 calendar days of receiving notice of their creation or registration becoming effective.
On or after January 1, 2025: Must file within 30 calendar days of receiving notice of their creation or registration becoming effective.
Why is the BOI Report important?
The BOI Report aims to combat financial crime by increasing transparency around company ownership. This helps authorities investigate money laundering, terrorist financing, and other illicit activities. Filing accurately and on time avoids potential penalties, including fines and reputational damage.
How can Acru help?
We understand navigating new regulations can be challenging. We can assist you with:
Assessing your filing obligation based on your company's formation date and structure.
Identifying your beneficial owners and gathering the necessary information.
Prepare and file the BOI Report electronically through the FinCEN portal.
Staying updated on any future changes or clarifications to the BOI reporting requirements.
Ready for expert support? Email us: hello@acru.solutions
Additional Resources:
FinCEN BOI Website: https://www.fincen.gov/boi
FinCEN BOI FAQs: https://www.fincen.gov/sites/default/files/2018-04/FinCEN_Guidance_CDD_FAQ_FINAL_508_2.pdf
Have questions? Contact our experts!
