Beneficial Ownership Information Report Eligibility
Starting January 1, 2024, the Corporate Transparency Act requires many companies operating in the United States to file a Beneficial Ownership Information (BOI) Report. Failure to do so can lead to huge fines and even imprisonment.
Eligibility Check Quiz
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Uncovering the World of BOI!
Discover in-depth insights and practical advice on the Corporate Transparency Act and the Beneficial Ownership Information process through our informative blog articles.
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Frequently Asked Questions
What is a BOI Report, and who needs to file it?
BOI Report is a disclosure document that every reporting company that is not exempt must file. It requires the reporting company to provide Information for each of its Beneficial Owners and company applicants.
What information must be included in the BOI Report?
The BOI Report must disclose information for each Beneficial Owner. Entities formed or registered to do business on or after January 1, 2024, must also provide the same information for the Company Applicant.
Who is considered a "beneficial owner"?
A “beneficial owner” is an individual who meets either of the following tests:
- Ownership Test: Directly or indirectly owns or controls 25% or more of the ownership interests of the company.
- Control Test: Exercises substantial control over the company through other means, such as by holding a significant influence over important decisions.
Who is a Company Applicant for a Reporting Company?
For reporting companies created or registered on or after January 1, 2024, the Company Applicant is:
- The individual who directly files the document that creates or registers the company, and
- If more than one person is involved, the individual is primarily responsible for directing or controlling the filing.
What are the deadlines for filing an initial BOI report with FinCEN based on when a company was created or registered?
- For Companies Existing Before January 1, 2024: The initial BOI report must be filed by January 1, 2025.
- For Companies Created or Registered Between January 1, 2024, and January 1, 2025: The initial BOI report must be filed within 90 calendar days from receiving actual notice of creation or registration, or from the date public notice is provided by a secretary of state or similar office, whichever comes first.
- For Companies Created or Registered on or After January 1, 2025: The BOI report must be filed within 30 calendar days of receiving actual or public notice that the company’s creation or registration is effective.
- For Companies No Longer Qualifying for an Exemption: The BOI report must be filed within 30 calendar days of losing the exemption status.
Is there an annual renewal requirement for the BOI Report?
No, there is no annual renewal requirement. However, the reporting company must amend its BOI Report within 30 days if there is any change in the information of any Beneficial Owner.
What are the penalties for failing to file a BOI Report on time?
Failing to file a BOI Report on time may result in a fine of $500 per day. Willful failure to file or filing false information may be considered a felony.
