Everything Businesses Must Know About the BOI Filing Process

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Nov 15, 2023

It is not uncommon for businesses of all scales to come across harsh legal filings and regulations. From understanding the legal challenge to overcoming documentation, many aspects of a business make BOI filings daunting. However, there is nothing too challenging that you cannot overcome.

The US Treasury’s Financial Crimes Enforcement Network (FinCEN) has changed the reporting requirements for the Corporate Transparency Act (CTA). New provisions are added to address illicit practices among the financial systems and U.S.  businesses. 

Here are some crucial tips that can help you avoid hassle during BOI filings.

The Concerned Parties

The wave of BOI reporting has made every business owner and related people consider whether they also need to keep an eye on the relevant news. The BOI filing requirement concerns the businesses created or registered to operate in the US. 

These businesses must file statements of beneficial ownership and notify FinCEN. Here is some information about the parties that must keep an eye on BOI and its implications.

Reporting Companies

Any business required to submit a BOI report is called a reporting company. It means that this company already has any documents under the state or tribal law. These companies may also include foreign businesses registered to conduct activities in the US. However, you may not need to file a BOI report if the company was not expected to file formation documents.

Beneficial Owners

Anyone with notable control over the reporting company, such as owning one-fourth of a company’s interests, can be a beneficial owner. It can be challenging to determine someone with ownership interest as a beneficial owner according to these standards, even after excluding exceptions such as minors, agents, custodians, and creditors. Many businesses may even need to refer to a law attorney to find an answer.

Company Applicant

Anyone who files for the formation or registration of business documents is known as a company applicant. This category also includes anyone who oversaw the people handling the process of filing a business in its early stages.

Important Requirements

The deadline for submitting the BOI report is 30 days from the day a business was created or registered. Since this rule will go into effect on January 1, 2024, every business formed before this time will have until 2025 to submit their BOI report.

FinCEN does not want any businesses left behind to ensure the success of a business and the reduction of crimes such as trafficking, money laundering, and other crimes. The concerned parties mentioned above must comply with this regulation to avoid legal issues. 

  • Personal information of each beneficial owner
  • Passport, Driver’s License, or government ID of every owner
  • Name of the reporting company

You must remember that this information can be discolored to certain requesters such as law enforcement and other legal parties. However, FinCEN pledges to maintain the confidentiality of beneficial owners.

You can go to the FinCEN website to proceed through a secure filing system. Although the logistics and ongoing work on these regulations can confuse people, you can get all the needed help from a legal professional.

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