Starting January 1st, 2024, a new regulation has been implemented, requiring numerous businesses, such as Limited Liability Companies (LLCs) and Corporations, to submit a beneficial ownership information (BOI) report to FinCEN.

What is FinCEN?

FinCEN, short for Financial Crimes Enforcement Network, operates as a bureau within the U.S. Department of the Treasury. In September 2022, FinCEN introduced the BOI requirement to enhance financial transparency and prevent illicit financial activities, including money laundering.

What is BOI?

Beneficial Ownership Information (BOI) is a critical component of modern tax regulations aimed at promoting transparency and accountability in business operations. The BOI report gathers information on beneficial owners who have direct ownership or control over a company.

This report serves to prevent individuals from exploiting shell companies or dubious ownership arrangements for unlawful purposes. It provides the U.S. government with crucial data to safeguard national security and protect financial systems from individuals involved in activities such as drug trafficking, fraud, money laundering, and other illicit endeavors.

While compliance may require businesses to invest time and resources, the benefits of BOI extend beyond regulatory compliance. Understanding BOI is important because it helps businesses be more trustworthy and secure. By knowing the basics and benefits of BOI, companies can better handle its complexities and succeed in the global economy.

What to know about beneficial ownership information reporting

A BOI report is mandatory for businesses meeting FinCEN’s definition of a “reporting company”.

Companies fall into two categories: domestic or foreign. Domestic ones are entities created through state or tribal registration, while foreign ones are formed under foreign country laws but register to do business in the U.S.

LLCs, C Corporations (including S Corporations), and other entities filing registration documents may be considered reporting companies (e.g., Limited Partnerships, Limited Liability Partnerships, Limited Liability Limited Partnerships, and business trusts).

StartGlobal’s website offers a page for placing an order for your BOI report.

Benefits of BOI

1. Transparency
   The report promotes transparency in corporate ownership structures.
   
   
2. Financial Security
   It helps authorities identify and investigate suspicious transactions, enhancing financial system security.
   
   
3. Regulatory Compliance
   Compliance reduces the risk of penalties and legal consequences.
   
   
4. Crime Prevention
   The report supports efforts to combat financial crime, including money laundering and terrorist financing.
   
   
5. Due Diligence
   It enables more effective due diligence processes, reducing exposure to illicit activities.

Navigating BOI Compliance

Complying with BOI regulations may seem daunting, but with the right approach, businesses can streamline the process and ensure compliance. The first step is to conduct a thorough review of existing ownership structures to identify beneficial owners accurately. This may involve gathering information on shareholders, directors, and other relevant parties.

Once beneficial owners have been identified, businesses must ensure that this information is accurately documented and reported to the appropriate authorities. Depending on the jurisdiction, this may involve filing annual reports, submitting declarations, or registering beneficial ownership information with government agencies. Implementing robust internal controls and governance mechanisms can help businesses manage their BOI obligations effectively.

Filing a BOI report

What to include in a BOI report

Company Information:

• Legal company name
• Any DBAs or trade names
• Jurisdiction of formation
• Tax ID (EIN, SSN, or ITIN)

Beneficial Ownership Information:

• Full name
• Residential address
• Date of birth
• Photo ID

Cost

We can help you to file in a compliant and stress-free way. Starts at $199

Exemptions to BOI

Exemptions exist for publicly traded companies meeting specified requirements, many nonprofits, and certain large operating companies. Below is a summary of the 23 types of exemptions.

Deadlines

FinCEN started accepting BOI reports on January 1, 2024. Reporting deadlines are as follows:

Existing companies: Must file initial BOI reports by January 1, 2025.

New companies: Must file within 30 days of formation, triggered by notice of effectiveness or public registration notice, whichever is earlier.

Reporting companies must update or correct BOI reports when necessary, without recurring annual reporting. Changes require submission within 30 calendar days.

Data privacy

StartGlobal keeps all BOI data private, accessible only to authorized government officials and financial institutions with reporting company consent.

Penalties

Penalties for late or inaccurate reporting range up to $500 per day, with criminal penalties for willful falsification.

Where to file

BOI reports can be filed stress-free through StartGlobal’s Website

Frequently Asked Questions

What information is needed for beneficial ownership?

The CTA imposes a requirement on the company providing its beneficial owner names and addresses, and their passport number and driver’s license number.

Who needs to file a beneficial ownership information report?

Under this Act, all businesses which are considered an alleged reporting corporation are required to submit their benefit-owned information reports (BOIRs) to the Financial Crime Enforcement Network (FinCEN). February 13th, 2024. See all.

What is an example of beneficial ownership?

A good-luck investor is someone who is able to own a substantial portion of the property despite a claim to that asset. The individual may also make decisions concerning transactions relating to these items or their possessions. A typical company shareholder.

What does beneficial owner details mean?

What are beneficiaries of life? Beneficial owners are persons who enjoy the benefits of ownership, although the property is a separate name.

Why use StartGlobal to file a Beneficial Ownership Information Report?

Navigating a new law with civil and criminal penalties, such as imprisonment and fines, can be overwhelming. Our seamless and precise report filing eliminates concerns and ensures compliance effortlessly. We’re here to do the all the boring backend work, so you can focus on what you do best!