Introduction
If you own or operate a business in the U.S., you may have heard of a new requirement called BOI filing. But what is a BOI filing, and why is it now essential?
BOI stands for Beneficial Ownership Information. This new filing requirement, introduced by the Corporate Transparency Act (CTA) and enforced by FinCEN (Financial Crimes Enforcement Network), requires many businesses to report information about their owners and controllers.
This blog explains what a BOI filing is, why it exists, and how it impacts your business.
What Is a BOI Filing?
A BOI filing is a report that businesses must submit to FinCEN to disclose their beneficial owners—the individuals who either:
- Own 25% or more of the company, or
- Have substantial control over business decisions.
This filing is designed to improve transparency and fight crimes like money laundering, terrorism financing, and fraud.
Why Was BOI Filing Introduced?
The Corporate Transparency Act (CTA) took effect on January 1, 2024, and aims to prevent bad actors from hiding behind anonymous shell companies. By requiring companies to disclose who actually owns or controls them, the U.S. government can better track and eliminate illicit financial activity.
Who Is Required to File BOI?
BOI filing is required for most “reporting companies,” including:
- LLCs
- Corporations
- Limited liability partnerships
- Foreign entities registered to do business in the U.S.
Exemptions Include:
- Publicly traded companies
- Banks, credit unions, and insurance companies
- Large operating companies (20+ employees, $5M+ annual revenue, physical presence)
- Inactive entities meeting specific conditions
What Information Must Be Reported?
For the Company:
- Legal business name
- Any DBAs (Doing Business As names)
- Business address
- EIN or Taxpayer ID
- Jurisdiction of formation
For Each Beneficial Owner:
- Full name
- Date of birth
- Residential address
- ID number from a passport or driver’s license
- Copy of the ID document
BOI Filing Deadlines
| Entity Type | Formation Date | Deadline |
|---|---|---|
| Existing companies | Before Jan 1, 2024 | File by Jan 1, 2025 |
| New companies (2024) | On or after Jan 1, 2024 | File within 90 days |
| New companies (2025+) | After Jan 1, 2025 | File within 30 days |
How to File a BOI Report
BOI filings must be submitted electronically through the official FinCEN website: https://www.fincen.gov/boi
- Filing is free
- Filing must be updated if ownership changes
- No annual renewal is required (as of now)
What Happens If You Don’t File?
Failing to submit a BOI filing can result in serious penalties:
- Up to $500/day for each day of non-compliance
- Criminal penalties up to $10,000 and 2 years in prison
Conclusion
So, what is a BOI filing? It’s a mandatory report that helps the government identify who really owns and controls U.S. businesses. If you own an LLC or corporation, you’re likely required to file — and the penalties for skipping it can be steep.
Stay compliant and protect your business. For hassle-free filing, visit FormLLC.us — your trusted partner for BOI compliance and business formation.
