BOI Filing Requirements for Companies in Arizona

With the full enforcement of the Corporate Transparency Act (CTA), it therefore means that companies in Arizona have to understand how to go about BOI filing. For any business, the need to ensure transparency and deter illicit financial activities makes the requirement of BOI reporting very huge. This guide details all you should know about the BOI reporting requirements for companies in Arizona to keep you compliant with federal law.

Understanding BOI Filing

BOI filing is necessary under the CTA, where entities are obligated to report information on their beneficial ownership to FinCEN. This makes sure that no company in Arizona, or anywhere within the United States, is used to commit any unlawful act such as money laundering or financing terrorism.

The term “beneficial owner” refers to people who own 25% or more of the company or those with a very great deal of control in its operations. Companies should accurately file their BOI reports to avoid penalties.

Who Needs to File a BOI Report in Arizona?

Most entities doing business in Arizona are required to file a BOI report. These include the following:

• Any LLC
• Any corporation
• Any other entities filed through the Arizona Secretary of State

However, some entities are exempted from filling out the BOI report and include:

• Large operating companies with more than 20 employees and $5 million revenue.
• Non-profit organizations
• Publicly traded companies

If your company falls under one of these exemptions, you might not be required to file a BOI report.

Deadlines for BOI Filing

For companies established prior to January 1, 2024, your BOI report shall be filed on or before January 1, 2025.

Newly established companies-after January 1, 2024 are required to file the BOI report within 90 days from the date of incorporation.

Failure to file properly or on time may mean serious penalties under the CTA. Thus, keeping ahead of the BOI filing deadline is of utmost importance.

How to File Your BOI Report

Follow the following steps to do a compliant reporting:

• Collect required information – Gather data on all beneficial owners, including but not limited to name, date of birth, address and unique identifying number (e.g., passport or driver’s license number).
• Get a FinCEN ID number – Beneficial owners may apply for a FinCEN identifier – a FinCEN id or number – through the financial crimes enforcement network’s secure online web portal. The unique identifier will facilitate reporting by reducing personal information included in the BOI filing report.
• Confirmation of filing BOI report – Use the FinCEN website to file your BOI report, making sure everything is complete and accurate.

Importance of FinCEN Numbers

A FinCEN number acts as a protected identifier of the individuals that the BOI report contains. Instead of providing sensitive personal information, businesses can give this number to maintain privacy for the owners. This also helps in the reporting process for beneficial ownership information.

Corporate Transparency Act Penalties

Failure to comply with the BOI filing guidelines set by the CTA can attract severe penalties that are:

• $500 daily fines if the filed form is incomplete or late
• There are criminal charges for intentional non-compliance, which can also include imprisonment

What is the Corporate Transparency Act?

The Corporate Transparency Act or the CTA is one of those landmark legislations that will affect the way business is done in the United States. While it is mandatory for domestic companies in the United States, even foreign entities in the US are subject to the CTA’s provision.

It was introduced under the Anti Money Laundering Act of 2020. According to the act, certain companies will have to file their BOI reports with FinCEN. This policy is regulated to apply to corporations, LLPs, and similar entities. It helps in creating a beneficial ownership database at the national level to prevent illegal activities like money laundering and terrorism financing.

Conclusion

Compliance with BOI reporting requirements for companies in Arizona is non-negotiable under the CTA. Whether you are a small LLC or a larger corporation, understanding the BOI filing process is essential to avoid penalties and maintain good standing.

File your BOI report now and before the deadline to ensure that your company complies with federal regulations. If needed, seek help from a lawyer or financial professional knowledgeable in the field of beneficial ownership information reporting.