Introduction
If you’re wondering what is the BOI filing requirement, you’re not alone. The BOI (Beneficial Ownership Information) filing requirement is part of a new federal rule under the Corporate Transparency Act (CTA), enforced by FinCEN—the Financial Crimes Enforcement Network.
The rule aims to prevent illegal financial activity by increasing transparency in business ownership.
What Is the BOI Filing Requirement?
The BOI filing requirement mandates that certain companies submit details about their beneficial owners to FinCEN. A beneficial owner is someone who:
- Owns 25% or more of the company, or
- Exercises substantial control over it.
This filing helps the U.S. government track shell companies, money laundering, and other financial crimes.
Who Must File a BOI Report?
Most U.S. businesses must comply, including:
- LLCs
- Corporations
- Limited partnerships
- Foreign companies registered in the U.S.
Exemptions Include:
- Large operating companies with 20+ employees and $5M in annual revenue
- Regulated entities like banks and insurance firms
- Nonprofits (in some cases)
What Information Is Required?
For each beneficial owner and company applicant, you must report:
- Full legal name
- Date of birth
- Residential address
- ID number and image (passport or driver’s license)
The company must also provide:
- Legal name and DBA
- Formation state and EIN
- Business address
BOI Filing Deadlines
- Formed before Jan 1, 2024: File by Jan 1, 2025
- Formed during 2024: File within 90 days of formation
- Formed after Jan 1, 2025: File within 30 days of formation
How to File
You can file your BOI report online and for free at:
https://boiefiling.fincen.gov
Penalties for Non-Compliance
Failing to meet the BOI filing requirement can result in:
- $500 per day in civil penalties
- Up to $10,000 in fines
- Up to 2 years in prison
Conclusion
What is the BOI filing requirement? It’s a vital step to ensure your company complies with federal transparency laws. Don’t wait—identify your beneficial owners and file with FinCEN before your deadline.
