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Beneficial Ownership Information

Ensure compliance with FinCEN's BOI reporting requirements. We help businesses identify, document, and file beneficial owner information accurately and on time.

BOI FilingDeadline ComplianceFinCEN ReportingPenalty Avoidance

What is Beneficial Ownership Information?

Beneficial Owner Information (BOI) refers to the identification and documentation of individuals who hold significant ownership or control over a business entity. These individuals, known as beneficial owners, are typically those who own the company's equity or have a substantial influence over decision-making processes.

The purpose of collecting BOI is to ensure transparency, prevent fraud, and help comply with regulations related to anti-money laundering (AML), combating the financing of terrorism (CFT), and other financial crimes. Many governments and financial institutions require BOI disclosures to enhance corporate governance and prevent misuse of legal entities.

Key Reporting Rules

  • Every corporation or entity (LLC, S-Corporation, etc.) created by filing a document with the Secretary of State is required to submit Beneficial Ownership Information.
  • Reporting entities doing business before January 1st, 2024 have until January 1st, 2025 to report their initial beneficial ownership report.
  • Entities that begin doing business between January 1st, 2024 and December 31st, 2024 have 90 calendar days after public notice of their registration to file their initial report.
  • Entities that begin doing business after January 1st, 2025 have 30 calendar days after their registration being in effect to file their initial report.
  • Failure to report within 90 days of the deadline can result in a $500/day fine and up to two years imprisonment with a $10,000 fine.
  • If a business did not file with the secretary of state or similar office, the entity is NOT required to submit a BOI.
  • Entities are only required to report company applicants if they are created and registered on or after January 1st, 2024.
  • All company applicants must be listed as individuals, not companies or legal entities.

BOI Guidelines & Definitions

Expand each section to learn the precise definitions used in BOI reporting.

  • Any individual who:
  • Exercises substantial control over a company.
  • Owns or controls at least 25% of a company's ownership interest.
  • Can be exercised in four ways:
  • Individual is a senior officer.
  • The individual has the power to appoint or remove certain officers or majority of directors.
  • The individual is an important decision-maker within the company.
  • Any other form of substantial control (flexible corporate structures).
  • It can be defined as:
  • Equity, stock, or voting rights
  • Capital or profit interest
  • Convertible instruments: anything that can be converted into equity or profit interests.
  • Beneficiary is a minor — information of their parent or guardian is reported instead.
  • The individual acts on behalf of the actual beneficial owner (agent, custodian, advisor, etc.).
  • The individual is an employee of the beneficial owner (cannot be a senior officer).
  • The individual's only interest in the company is as a future inheritor.
  • The individual is a creditor of the company.

Full legal name, trade name / DBA name, complete current address, state or tribal jurisdiction of formation, IRS TIN & EIN.

  • If owned by an exempt entity, it is not necessary to report the information of a beneficial owner.
  • If owned by a minor child, you do not need to report their information provided you report the parent or guardian's information.
  • Foreign pooled investment vehicle: only report the information of the owner with the greatest power.
  • Company applicants reporting for companies formed before January 1st, 2024 do not have to report any company applicants.

Not mandatory. A company applicant or beneficial owner can request a FinCEN identifier after submitting their initial report to FinCEN. This can be used in the future in place of the four pieces of personal information.

Frequently Asked Questions

Companies must report any changes to required information about the company or beneficial owner within 30 days of the change.

If there is an inaccuracy in the reported information, the company must correct the mistake within 30 days of being made aware. There is no penalty for an inaccurate BOI report provided it is corrected within 90 days of submission.

The company should file an updated BOI report indicating that it is newly exempt.

Created to deter fraudulent activity (shell companies / unclear ownership structures), BOI is reported to shine a light on individuals who indirectly or directly control an entity.

Who Is Exempt from Filing BOI?

The following entity types are exempt from Beneficial Ownership Information reporting requirements:

No.Exemption
1Securities reporting issuer
2Governmental authority
3Bank
4Credit union
5Depository institution holding company
6Money services business
7Broker or dealer in securities
8Securities exchange or clearing agency
9Other Exchange Act registered entity
10An investment company or investment adviser
11Venture capital fund adviser
12Insurance company
13State-licensed insurance producer
14Commodity Exchange Act registered entity
15Accounting firm
16Public utility
17Financial market utility
18Pooled investment vehicle
19Tax-exempt entity
20Entity assisting a tax-exempt entity
21Large operating company
22Subsidiary of certain exempt entities
23Inactive entity

For more information about BOI compliance, contact us — our certified team is ready to guide you through every step of the filing process. You can also reach us directly at (972) 532-3240.

Schedule a free consultation with our certified team today.