As of January 1, 2024, the Corporate Transparency Act (CTA) requires most LLCs and other business entities to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). This report aims to increase transparency and combat financial crimes by identifying the individuals who own or control these entities.

If you’re running an LLC, here’s a breakdown of what this means, why it matters, and how to file your BOI report.

Who Needs to File a BOI Report?

Most LLCs, corporations, and other entities created or registered to do business in the U.S. are required to file, except for specific exempt categories (such as publicly traded companies or certain nonprofits).

What Information Must Be Reported?

You’ll need to provide details about:

  • The LLC:
    • Name of the entity.
    • Address.
    • EIN (Employer Identification Number).
  • Beneficial Owners:
    • Full legal name.
    • Date of birth.
    • Residential address.
    • A government-issued ID (such as a driver’s license or passport).

Who Is Considered a Beneficial Owner?

A beneficial owner is any individual who:

  • Directly or indirectly owns 25% or more of the company.
  • Exercises substantial control over the company’s management or operations.

When to File

  • New entities: Must file within 30 days of registration.
  • Existing entities: Have until January 1, 2025, to file.

How to File the BOI Report

  1. Create a FinCEN Account: Visit the FinCEN website and register for an account.
  2. Gather the Required Information: Ensure you have all necessary details about the LLC and beneficial owners.
  3. Complete the BOI Report Form: Use the online portal to enter the information.
  4. Submit and Save Confirmation: Keep a copy of your submission for your records.

Penalties for Non-Compliance

Failing to file the BOI report can result in fines of up to $500 per day and possible criminal penalties, including imprisonment.

Why This Matters

The BOI report increases transparency and protects against misuse of entities for illicit purposes. For business owners, compliance is essential to avoid penalties and ensure good standing with federal regulations.

Need Help?

If you have questions about filing your BOI report, consult with a legal or tax professional to ensure compliance. Staying proactive can save you time and avoid complications later.

Let us know if you need further guidance on how this impacts your LLC or business operations!