The Corporate Transparency Act of 2024 imposed great changes in BOI reporting. Companies in Illinois need to understand and abide by such needs or requirements; otherwise, they will be met with huge fines. Beneficial Ownership Information, or BOI reporting is a new layer of transparency that will hopefully be able to reduce any kind of illicit activities. As such, diligent adherence to certain guidelines is necessary.
What Is BOI Reporting?
BOI reporting simply describes the process through which businesses supply the names, addresses, birth dates, and other important information about who actually possesses control over them, directly or indirectly. Such would include an individual owning at least 25% of the company’s shares or having substantive control over the way its business is run. The information is submitted to FinCEN under the Corporate Transparency Act 2024.
BOI Reporting Requirements for Illinois Companies
From the perspective of owning a company in Illinois, you need to understand what you need to file when filing BOI. Companies, business corporations, LLCs, and some partnership companies have different requirements. The following shall be filed for the companies in Illinois:
- Full legal name of the beneficial owner(s)
- Residential or business address
- Date of birth
- Unique identifier – driver’s license or passport number
This is required to be submitted annually, and within 30 days when there is any change in the company’s beneficial ownership.
File BOI Reports in Illinois
Like the LLCs in other states, Illinois LLCs also report their BOI with FinCEN. With LLCs, which is a general trend observed with other business entity forms, the BOI reporting has a strong element of disclosure regarding who the actual owner controlling the company is. Furthermore, all information reported must be correct and up to date by the Illinois LLC as well.
Corporate Transparency Act 2024 And its Penalties
The Corporate Transparency Act of 2024 was enacted into law to fight financial crimes, including money laundering and terrorist financing. As a requirement in this context, reporting companies – which refer to entities in Illinois – are under obligation to file information about their beneficial owners with FinCEN. This policy is aimed at forming a central database of information on the real owners that law enforcers could access in the course of criminal investigations.
Non-compliance with the Corporate Transparency Act 2024 can result in severe penalties for companies in Illinois, including a civil penalty of as high as $500 per day and, if that were not enough, even criminal penalties, including imprisonment, of those responsible for filing. Businesses have to remain vigilant to avoid costly consequences of neglect of BOI reporting.
Who Is Exempt from BOI Reporting?
Exempt entities under BOI reporting in CTA:
- Publicly traded companies
- Government entities
- Banks and credit unions
- Any large operating company with more than 20 employees and revenue over $5 million
- Any other entities subject to regulation pursuant to federal law
Small businesses and LLCs in Illinois will want to take a close look at their status nonetheless to make certain they are not assuming an exemption when they do not have a legitimate basis for doing so.
How to Stay Compliant with BOI Reporting in Illinois
Compliance with BOI reporting requirements means filing accurately and on time. The companies in Illinois should:
- Determine if the enterprise is subject to or exempt from the BOI reporting.
- Maintain current records of its filings and report any change in ownership to FinCEN
- File the required information
- Understanding these steps will assist the business in ways of staying in compliance with the Corporate Transparency Act 2024 by steering away from penalties.
Conclusion
The Corporate Transparency Act 2024 means new requirements for reporting beneficial ownership information among companies operating in Illinois. Any business entity should understand what its requirements are so that it may keep itself in a compliant position. Whether it is a corporation or LLC, the right steps can be taken to avoid costly penalties and ensure compliance with the BOI reporting requirements.
If you own or operate a business in Illinois and are still confused about the BOI requirements, worry not. You can visit our website or contact us. We will take care of your filing needs.