The BOI filing requirements mark a key milestone in the effort to increase corporate transparency and compliance with federal laws.
As the deadlines and specific reporting requirements approach, it is important that LLCs operating in Indiana understand what the requirements are.
What Is BOI Filing & Why Is It Important?
The BOI Reporting mandates that the companies have to report the details of persons who ultimately own or have considerable control over the entity. This will include such information as the legal name of the beneficial owner, date of birth, residential address or business address, and a unique identifier in the form of a FinCEN ID number, a passport number or a driver’s license number.
In simple words, BOI filing refers to filing the essential information on the actual beneficial owners of a company with FinCEN. Such reporting will be necessitated by the Corporate Transparency Act, in which a report is needed as one way of curtailing these illegal activities, including money laundering and tax evasion, by making business entities more responsible.
Who Must Comply with BOI Filing in Indiana?
All domestic LLCs in Indiana and foreign LLCs registered to do business within the state shall file with the BOI, except as provided by exemptions. These exemptions are usually applicable only to those entities already being highly regulated, such as:
- Publicly traded companies
- Financial institutions
- Certain tax-exempt organizations
If your Indiana LLC is not exempt, you are required to submit a BOI report detailing the company’s beneficial ownership.
What Information Must Be Included in the BOI Filing?
For Indiana LLCs, the BOI filing must include the following information:
Beneficial Owners’ Details:
- Full name
- Date of birth
- Residential or business address
- An identifying number (such as a driver’s license, passport, or FinCEN ID)
Company Information:
- Legal name
- Address
- Formation or registration date
- Employer Identification Number (EIN)
The filing should also identify individuals who exercise significant control over the company, even if they do not own 25% or more of it.
How to File a BOI Report
An LLC can electronically file its BOI report via the FinCEN reporting portal. To do this:
- If required, create a FinCEN ID
- Preparation of all the required information concerning the structure and beneficial owners
- Filing the report before the applicable deadline
Conclusion
The BOI filing requirements are a manifestation of the national trend of increased transparency in business. It was not just about avoiding fines being imposed on Indiana LLCs but also one of building confidence and accountability in the greater community of owners. In giving significance to compliance with BOI filing requirements, it would be a contribution toward a more secure and transparent corporate environment, preserving the operation from legal vulnerabilities.