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New Federal Reporting Requirement for
Beneficial Ownership Information (BOI)

Effective January 1, 2024, many companies in the United States must report information about their beneficial owners—the individuals who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.

Depending on your business structure, you must report beneficial ownership information (BOI)—aka who owns and controls your company—to the U.S. government. If you fail to comply, you could face hefty penalties and even jail time. 

 

Your company may need to report information about its beneficial owners if it is:

 

  1. a corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or

     

  2. a foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing.

     

Who may be Exempt.

  • Sole proprietorships and general partnerships typically don’t need to file.
     

  • Federally regulated businesses, such as publicly traded companies, financial institutions, and insurance companies, may be exempt.
     

  • Businesses with at least 20 full-time employees, more than $5 million in revenue, and a substantial footprint in the US may also be exempt.

 

When Do you need to report?

FinCEN began accepting reports on January 1, 2024.

 

  • If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.

     

  • If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.

     

  • If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.

     

  • Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

 

FOR MORE INFORMATION ON FILING AND REQUIREMENTS PLEASE VISIT FINCEN (BOI) WEBPAGE https://www.fincen.gov/boi

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