If you are a company owner in New York, taking the time to understand your BOI reporting requirements is quite crucial. Financial Crimes Enforcement Network (FinCEN) requires companies to file their beneficial owners under the Corporate Transparency Act known as CTA.
In this article, we look at some of the most important things that you will need to know about the BOI reporting requirements for companies in New York.
What Is BOI Reporting?
In practice, BOI reporting is supposed to improve corporate transparency and, therefore, is a federal mandate. The companies impacted would need to declare aspects of their substantial beneficial owners, including ownership or control. BOI reporting will hopefully nip illegal activities, including money laundering and terrorism financing, in the bud by actually showing more transparent ownership in reality.
Does My New York Business Need to File a BOI Report?
Your business is compulsorily required to file a BOI report if it is a corporation, LLC, or other similar entity that was formed or registered for the purpose of doing business in New York. Some companies, however, are not required to file a BOI report. These include the following:
- Publicly traded companies
- Large operating companies with more than 20 full-time employees
- Entities that are classified as inactive based on specified criteria
It is therefore important to see whether your business qualifies for an exemption or if you fall under the requirements of FinCEN to report.
What Information Do I Need to File a BOI Report?
Filing a BOI report in New York requires the due provision of details concerning, but not limited to, the following for every business enterprise’s beneficial owner:
- The full legal name of each beneficial owner
- Date of birth
- Residential address
- An identifying number from an official document such as a driver’s license or passport
The firm is also to report persons exercising substantial control over the business, such as executives or senior officers.
What Is the BOI Reporting Deadline for New York Companies?
Under the law, new businesses formed in New York after the start of 2024 will be required to file their BOI reports within 90 days of formation or registration. For existing companies, the date to file BOI reports is January 1, 2025.
Where changes to beneficial ownership occur after filing, the companies shall send to FinCEN a revised BOI report within 30 days of such change.
How to File Your BOI Report for a New York Business
The BOI report is directly filed with FinCEN. Filing is online. Access the required information about the beneficial owners of your company, and submit them through the steps that follow:
- Collect all the required information from the Beneficial Owners.
- Go online to access FinCEN’s BOI Filing System.
- Input details and submit the report.
Keep on file a copy of all documents and confirmations for your records.
Corporate Transparency Act Exemptions and Fines
Understanding these Corporate Transparency Act exemptions can help you in determining whether your business needs to file the BOI reports or if you fall into one of the exempt categories.
- Bank
- Credit union
- Securities reporting issuer
- Governmental authority
- Securities exchange or clearing agency
- Money services business
- Insurance company
Failure to comply with the BOI reporting guidelines, or making a statement that is false, involves accumulating severe penalties. If any business were to conduct an activity in New York, such lack of compliance would be subjected to:
- Civil fines up to $500 per day,
- Criminal penalties, with possible imprisonment for the willful violation.
Thus, sustaining compliance by the business for avoidance of such punishment is of great importance.
Conclusion
It is very important that companies in New York understand and comply with these reporting requirements with the BOI. Filing your BOI reports on time with accurate information will help you avoid penalties while contributing to increased corporate transparency.
If you are not sure whether your company is exempt or you need further assistance in filing, then reach out to us. You can also visit our page on the specificities of BOI report filing for New York businesses here.
Learn the detailed requirements for your state by utilizing our interactive map.