The Importance of Music Licensing in the Music Industry
This article explores the importance of licensing in the music industry, highlighting how it protects creators' rights and generates income.
The beneficial ownership information (BOI) report is a mandatory document established by FinCEN (U.S. Treasury's Financial Crimes Enforcement Network) as of January 2024. Its purpose is to identify the persons who own or benefit from a company, either directly or indirectly. This report must be filed once, unless the initial information needs to be updated.
It contains details about each beneficial owner, such as name, date of birth, address, nationality, and a unique identifier from the accepted identification document.
The BOI is not limited to the legal owners, but includes those who control or benefit from the company, thus helping to prevent financial crime. In addition, any person who, although not an internal part of the company, is mentioned in related legal documents should also be included in the BOI reporting.
This ensures a complete view of the ownership structure and those who have influence or benefit from the entity, thus strengthening efforts to maintain transparency and prevent potential financial irregularities.
Companies are required to report beneficial ownership information to the U.S. Treasury Department as a result of the Corporate Transparency Act, passed in a bipartisan manner in 2021 by Congress.
This legislation introduces a new reporting requirement aimed at strengthening the U.S. government's efforts to make it more difficult for malicious individuals to hide or profit from illicit gains through the use of shell companies or other structures.
The implementation of BOI reporting as a mandatory requirement seeks to address loopholes that could be exploited by those seeking to evade detection and scrutiny, thereby contributing to the fight against corruption and financial crime. By requiring companies to disclose detailed beneficial ownership information, the government seeks to increase transparency in corporate ownership, deter illicit activities, and enhance the ability of authorities to track and prevent the misuse of corporate structures for illicit purposes.
A beneficial owner of a reporting company is a person who, either directly or indirectly, meets at least one of the following criteria:
Companies that are required to file the Beneficial Ownership Information Report (BOI) with FinCEN are known as reporting companies. They are divided into two categories:
They include corporations, limited liability companies and other entities created by filing a document with a secretary of state or similar official in the United States.
They include entities, such as corporations and limited liability companies, formed under the laws of a foreign country, that have been registered to do business in the United States by filing a document with a secretary of state or similar official.
It is crucial to note that there are 23 types of entities that are exempt from the reporting requirements. It is recommended that these criteria be carefully reviewed before determining that a company is exempt. This will ensure proper compliance with the regulations and guarantee that companies, both domestic and foreign, comply with their BOI filing obligations with FinCEN. Contact us now to receive a free consultation with one of our expert professionals and identify if your company meets the exemption criteria.
Reporting companies should pay attention to the following deadlines for the filing of the Beneficial Ownership Information Report (BOI), according to their date of creation or registration:
Companies created or registered before January 1, 2024:
They will have until January 1, 2025 to submit their initial beneficial ownership information report.
Companies created or registered on or after January 1, 2024:
For reporting companies created or registered on or after January 1, 2024, the deadline for filing the Beneficial Ownership Information Report (BOI) is as follows:
During 2024:
As of 2025:
It is important to note that this information is subject to changes that FinCEN may make, sign up for our newsletter to receive updates.
Information required for the Reporting Company:
Information required for the beneficial owner and applicant of the company:
At Prodezk, we have streamlined the beneficial ownership information (BOI) filing process to make it agile and hassle-free. We have a dedicated team that will guide you through each step, ensuring an accurate and timely filing. To get started, contact us and complete your regulatory obligations in the simplest way possible - Make it Easy, Make it Pro!