How to File Beneficial Ownership Information (BOI) for Your LLC

A Step-by-Step Guide for New Filers

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As we approach the new year, understanding and complying with the Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA) is crucial for many business owners. If you're running a corporation or an LLC in the U.S., here's a comprehensive guide to navigate through the BOI filing process, designed especially for first-time users.

Who Needs to File BOI?

Most small businesses in the United States are subject to BOI reporting. Here’s a breakdown:

• Domestic Reporting Companies: Any corporation, LLC, or similar entity formed by filing with a secretary of state or similar office.

• Foreign Reporting Companies: Entities formed under the laws of a foreign country but registered to do business in the U.S. by filing with a state or tribal office.

Exemptions: Certain entities are exempt including large operating companies (over 20 employees, more than $5 million in gross receipts, and a physical office in the U.S.), publicly traded companies, banks, and credit unions, among others. Check FinCEN's list for detailed exemptions.

Step-by-Step Guide to Filing BOI for First-Time Users

1. Determine if You Need to File:

• Review if your company qualifies for an exemption. If not, proceed with filing.

2. Gather Necessary Information:

• Reporting Company Details: Include your company's legal name, trade names, current address, jurisdiction of formation, and taxpayer identification number.

• Beneficial Owners: Identify individuals who either own or control at least 25% of the company or exercise substantial control. Collect their full legal name, date of birth, residential address, and a unique identifying number from an acceptable ID (passport or driver's license).

• Company Applicants (for entities formed on or after January 1, 2024): Provide details for the person(s) who filed the creation document or directed its filing.

3. Visit the FinCEN BOI E-Filing System:

• Navigate to FinCEN's official BOI E-Filing System.

4. Choose Your Filing Method:

• Online Form: Enter all details directly on the website.

• PDF Form: Download, fill out offline, and upload the PDF.

5. Enter Information:

• If filing online, follow the prompts to input your company's and beneficial owners' information. For PDF, ensure all fields are completed before uploading.

6. Review Your Submission:

• Double-check all entered data for accuracy. Errors can lead to penalties or the need for correction filings.

7. Submit Your Report:

• Once satisfied with the data, submit your report. You'll receive a confirmation once it's processed.

8. Keep Records:

• Maintain records of your filing for future reference or updates.

Deadlines for Filing BOI

• Companies Created Before January 1, 2024: File by January 13, 2025.

• Companies Created After January 1, 2024: File within 90 days of creation for 2024 or 30 days for 2025 onwards.

Penalties for Non-Compliance

Failing to file your BOI or providing false information can lead to:

• Civil Penalties: Fines up to $591 per day of violation.

• Criminal Penalties: Potential imprisonment for up to two years and fines up to $10,000 for willful violations.

Remember, these penalties not only apply to the company but also to individuals responsible for the filing, such as senior officers.

Relevant Resources

• FinCEN's BOI Information Page: FinCEN.gov/BOI

• BOI E-Filing System: BOIEFiling.FinCEN.gov

• FinCEN Updates Subscription: For future guidance documents, subscribe at FinCEN.gov.

• Small Entity Compliance Guide: FinCEN's Small Entity Compliance Guide

In conclusion, filing your Beneficial Ownership Information is not just about compliance; it's about safeguarding your business from severe penalties and maintaining its integrity in the eyes of the law. Use this guide to ensure your business stays on the right side of regulation as we move into 2025.

Stay informed, stay compliant, and let your business thrive!