Beneficial Ownership Information Report
The Beneficial Ownership Information (BOI) report, which is required by the Corporate Transparency Act, is basically a filing that asks companies who is really in charge and benefiting from the company. Its purpose is to identify the individuals who own or control at least 25% of the company, or have a big say in how things are run. The BOI report is meant to crack down on shady stuff like money laundering, tax dodging, and funding illegal activities by giving the Financial Crimes Enforcement Network (FinCEN) identifying details about businesses’ ownership.
To clear things up, we’ve collected the best federal resources in one spot and explained the most important topics to keep your Washington business compliant.
- When do businesses have to file the BOI report?
- Which businesses are affected by the BOI report?
- What to expect to include in your company’s BOI report.
- How to file your Beneficial Owner Information report.
When do businesses have to file the BOI report?
As of January 1, 2024, all affected new businesses must file a BOI report to FinCEN within 30 days of formation. Businesses with a start date prior to 2024 have until the end of 2024 to submit their initial BOI report. If there are any errors in your filing, corrections should be made within 14 days of the erroneous report, and if there are changes made within the business or listed individuals, those updates should be reported within 30 days of the changes made.
Which businesses are affected by the BOI report?
Affected, called “reporting,” companies include:
- Domestic reporting companies. Corporations, LLCs, and any other entity created though filing with the secretary of state or similar office under the law of state or Indian tribe.
- Foreign reporting companies. Corporations, LLCs, or other entity formed under the law of a foreign company AND registered to do business domestically in U.S. state or in any Tribal jurisdiction, by the filing of a document with a secretary of state or any similar office under the law of a U.S. state or Indian tribe.
While this criteria covers most all corporations, LLCs, and other business types formed or registered to do business in any US state, there are some exceptions. These exceptions are primarily in industries that are already regulated with identifying information, like some banks, credit unions, and public utilities company. A full list of exempted companies is listed on the FinCEN website.
Here’s what to expect to include in your company’s BOI report:
|Company Information*||Beneficial Owner/Company Applicant Information|
|Legal company name||Full name|
|Any DBAs or trade names||Residential address|
|Jurisdiction of formation||Date of birth|
|Tax ID (EIN, SSN or ITIN)||Photo ID (such as a passport or driver’s license) must include full legal name, photo, the jurisdiction it was awarded, and a unique identifying number|
Beneficial Owners are anyone who makes any executive decisions for the company, such as a CEO or board members, and/or the individuals who own at least 25% of the company.
Company Applicants are those who file documents on behalf of the company, and/or those who direct filings to be completed.
How to File Your Beneficial Owner Information Report
Reporting companies file their Beneficial Owner Information reports directly to FinCEN on the secure FinCEN website. There is no filing fee to report, and all information is held secure by FinCEN and is not made available to the general public.