If you’re asking, “what is a BOI filing for an LLC,” you’re not alone. As of 2024, many business owners must comply with a new federal rule requiring the disclosure of beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN).
Understanding BOI Filing
BOI (Beneficial Ownership Information) filing is a mandatory report that discloses the individuals who directly or indirectly control or own a company. This rule is part of the Corporate Transparency Act (CTA) to combat money laundering, fraud, and terrorism financing.
Who Must File?
If you formed an LLC in the U.S., your company is likely required to submit a BOI report unless it qualifies for a specific exemption (e.g., large operating companies, regulated entities).
What Info Is Required?
For each beneficial owner and company applicant, you must report
- Full legal name
- Date of birth
- Current residential address
- Identification number (e.g., driver’s license or passport)
- A scanned copy of the ID
When Is It Due?
- LLCs formed before January 1, 2024 must file by January 1, 2025
- LLCs formed after January 1, 2024 must file within 90 days of formation
Why BOI Filing Matters
Failure to file can lead to civil fines of $500 per day and criminal penalties including up to $10,000 in fines or 2 years in prison.
Final Thoughts
So, what is a BOI filing for an LLC? It’s a legal requirement that ensures transparency about who owns and controls your business. Don’t risk penalties—stay compliant.
