The term “BOI filing requirement” refers to the mandatory submission of Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) as part of the Corporate Transparency Act (CTA). This federal rule aims to increase transparency and prevent illicit financial activities by identifying who actually owns or controls U.S. companies.
Who Must File a BOI Report?
Most companies formed or registered to do business in the U.S.—including LLCs, corporations, and similar entities—must comply unless they qualify for an exemption (e.g., large operating companies, banks, publicly traded companies).
What Information Must Be Reported?
If you’re asking what is BOI filing requirement, here’s a breakdown of the core data:
- Company Information: Legal name, trade names (if any), address, jurisdiction of formation, and Taxpayer Identification Number (TIN).
- Beneficial Owners: Full name, date of birth, residential address, ID number (e.g., passport or driver’s license), and an image of the ID.
- Company Applicants (for entities formed after Jan 1, 2024): Similar info as beneficial owners.
BOI Filing Deadlines
- LLCs formed before Jan 1, 2024: File by January 1, 2025
- LLCs formed in 2024: File within 90 days of creation
- LLCs formed in 2025 onward: File within 30 days
Why It Matters
Failing to comply with the BOI filing requirement can result in civil fines up to $500 per day and criminal penalties up to $10,000 or 2 years in prison.
Final Thoughts
To summarize, what is BOI filing requirement? It’s a federal obligation for most U.S. business entities to disclose ownership details to FinCEN. Early compliance can help you avoid costly penalties.
