How to Complete the BOI Report: A Comprehensive Guide

The BOI Report (Beneficial Ownership Information Report) is an important requirement for all businesses created before and after 2024 in the United States. This report, managed by the Financial Crimes Enforcement Network (FinCEN), aims to increase financial transparency and combat money laundering and other illicit activities.

In this article, we’ll explain in detail what the BOI Report is, who must file it, and how to complete it correctly.

What is the BOI Report?

The BOI Report is a declaration that provides information about the beneficial owners of an entity. A beneficial owner is anyone who directly or indirectly owns a significant percentage of the company. This report is mandatory for many business entities and must be filed with FinCEN.

Objectives of the BOI Report:

• Increase Financial Transparency: Allow authorities to know who owns commercial entities.
• Combat Money Laundering: Help prevent the use of companies for money laundering or financing illicit activities.
• Enhance Regulatory Oversight: Facilitate the oversight and control efforts of regulatory entities.

Who Must File the BOI Report?

Required Entities:

‍Most commercial entities in the United States, including corporations, limited liability companies (LLCs), and other registered entities, are required to file the BOI Report. However, there are certain exceptions, such as:

• Exempt Entities: Some entities, such as regulated financial institutions and certain public entities, may be exempt from this requirement.
• Small Businesses: Small businesses with limited income and assets may also be exempt, depending on specific FinCEN regulations.

Beneficial Owners:

‍A beneficial owner is any individual who owns or controls a significant percentage of the entity. This generally includes those who:

• Own 25% or more of the entity's ownership.
• Exercise significant control over the entity, even if they do not own a substantial percentage of the ownership.

Consequences of Non-Compliance:

‍Failure to meet the BOI Report requirements can result in significant penalties, including fines and other penalties. Evasion or failure to provide true information can also lead to imprisonment. To avoid these penalties, contact us for help with filing your BOI Report.

What Are the Requirements for the BOI Report?

For Reporting Companies:

• Full Legal Name: The complete legal name of the business.
• Trade Name or DBA: The business's trade name or "doing business as" name.
• Jurisdiction of Formation: The jurisdiction where the business is incorporated.
• EIN: The Employer Identification Number of the business.

For Beneficial Owners:

• Full Name: The legal full name of the owner.
• Date of Birth: The owner's date of birth.
• Identification Document: Only passport or any other document issued in the USA.
• Residential Address: The owner's residential address.
• Tax Identification Number: The owner's Tax Identification Number (TIN).
• Ownership Information: Details about the percentage of ownership or control exercised by the owner.

How to File the BOI Report?

At Prodezk, we understand the complexity of the BOI Report requirements and are here to help you comply with all regulations. We provide:

• Compliance Advice: Guidance on how to meet the BOI Report requirements and other regulatory requirements.
• Report Preparation: Assistance in gathering and submitting the necessary information for the BOI Report.
• Information Updates: Management of updates and changes to beneficial owner information.
• Ongoing Support: Continuous support to ensure your business complies with all tax and legal regulations.

The BOI Report is a crucial tool for increasing transparency and combating money laundering in the business industry. Complying with the requirements of this report is essential for any business operating in the United States. By following the correct steps and maintaining open communication with regulatory authorities, you can ensure your business is compliant and avoid penalties.

With Prodezk's support, you can manage these requirements with confidence and efficiency. If you have any questions, contact us for free consultation.