How to File a Beneficial Ownership Information Report?

Adhering to regulatory requirements is critical for businesses to stay in good standing and avoid costly penalties. One key requirement introduced by the Corporate Transparency Act is the Beneficial Ownership Information (BOI) Report.

This report, designed to increase transparency in the business environment, allows authorities to identify individuals who hold substantial control over companies.

Filing your BOI report accurately and on time is essential for maintaining compliance. It protects your business and contributes to efforts in combating money laundering and other illegal activities. Follow this step-by-step guide to efficiently submit your BOI report and fulfill this important regulatory obligation.

What to Know About Beneficial Ownership Information Reporting?

The Corporate Transparency Act (CTA) was enacted to enhance transparency in business ownership. It targets the misuse of anonymous shell corporations, which often serve as vehicles for tax evasion, money laundering, and other illicit financial activities.

Under the CTA, entities classified as reporting companies must submit a Beneficial Ownership Information Report (BOIR) to the Financial Crimes Enforcement Network (FinCEN).

A reporting company, as defined by the CTA, includes any privately held business—whether domestic or foreign—registered to operate in the United States. Publicly traded companies, however, are exempt, as they are subject to other reporting obligations.

The CTA defines a beneficial owner as any individual who either owns or controls at least 25% of a business or has substantial influence over it. This includes individuals who:

• Hold senior officer positions, such as president, CEO, or general counsel,
• Have the authority to appoint or remove senior officers, board members, or similar roles, or
• Make significant decisions about the company’s operations, finances, or organizational structure.

Through beneficial ownership reporting, the CTA aims to boost accountability and transparency across the business landscape, fostering a more secure and compliant financial environment.

Beneficial Ownership Information Reporting Requirements

To comply with BOI reporting requirements, certain information must be collected and disclosed about each beneficial owner –

• Full legal name
• Date of birth
• Residential or business address
• Unique identification number (such as Social Security number, passport number, or other government-issued ID)

A corporation, a limited liability company, or another entity formed in the United States or registered to conduct business in the country is required to report. Some entities, such as publicly traded companies or larger, highly regulated firms, may be exempt from BOI reporting.

However, all eligible entities must report accurate and up-to-date information regarding beneficial ownership.

Federal Reporting vs. Financial Institution Reporting

In addition to federal reporting requirements, many financial institutions require small businesses to provide beneficial ownership information. This added step helps protect financial institutions from being misused for illicit activities.

While FinCEN can share beneficial ownership details with government and law enforcement agencies and certain financial institutions, small businesses cannot meet federal reporting obligations solely by submitting this information to their bank.

How to File a Beneficial Ownership Information Report (BOIR)?

If you used a formation service to file your Certificate of Incorporation, check with them to see if they will handle the BOIR submission for you—many services offer this for free.

Here are the two main steps to filing your BOIR –

Step 1: Gather the Required Information

To complete the BOIR, you will need to collect specific information about –

1. The Company Itself – Legal name (as per your Certificate of Incorporation), an alternate business name, Employer Identification Number (EIN), state of incorporation, and the current U.S. business address.
   
2. Company Applicants – This only applies if your company was created on or after January 1, 2024. Include those who prepared and filed the formation documents. If you use a filing service, request the FinCEN ID of the employee who is filing.
   
3. Beneficial Owners – Any individual with substantial control or 25% or more ownership in the company. Information to collect includes:
   • Full name (matching government ID)
   • Date of birth
   • Address (residential for most; business address if the individual is an incorporator by profession)
   • U.S. driver’s license or passport number
   • A digital image of the non-expired ID (up to 4 MB in size)

Pro Tip: The BOIR PDF form, located on FinCEN’s website, allows you to record this information making   the final submission quick and easy.

Step 2: Complete and Submit the BOI

Visit FinCEN’s website to file your BOIR, choosing between two filing options:

1. Upload a Completed PDF – If you have filled out the BOIR PDF, go to “File PDF BOIR” on the FinCEN website, click “submit BOIR,” and follow the prompts. Ensure you’ve checked the correct filing type (e.g., “Initial report”) and double-check all information for accuracy.
   
2. Complete the Webform Online – If you don’t have a prepared PDF, use FinCEN’s “File Online BOIR” option. Select “Prepare & Submit BOIR” to fill out the web form, inputting the collected information about your company, applicants, and beneficial owners.

To finish, enter your name, and email address, and click “submit.”

Following these steps ensures your BOIR is accurately completed and submitted, keeping your company compliant with the CTA.

Summary of Filing a BOI Report

Filing a BOI report is essential for businesses to comply with federal transparency regulations. Choose the filing method that best suits your needs—either the PDF form or the online portal—and ensure accuracy and timeliness to avoid penalties.

Keeping your beneficial ownership information up-to-date is crucial for business accountability and regulatory compliance. At Fully Accountable, you will get accounting, analytics, and CFO services for your online product and service businesses.

Frequently Asked Questions