After the Corporate Transparency Act was passed in 2021 by the U.S. Congress, the FinCEN (Financial Crimes Enforcement Network) BOI report became a tax obligation that your company must file to verify that no illicit activities are being conducted by beneficial owners
FINCEN is the U.S. Treasury's financial crime enforcement network that collects and analyzes information to prevent terrorism and tax evasion.
By collecting detailed data on a company's beneficial owners, BOI reporting helps make a company's ownership and control structure transparent.
BOI reporting requirements
Beneficial owner and applicant for the company:
FINCEN penalizes failure to comply with the established dates or intent to provide false information in the filing of the BOI Reporting with:
- Civil penalties of $500 USD per day the violation continues.
- Criminal penalties of up to 2 years in jail or fines of $10,000 USD.
The filing of this document varies depending on the date of incorporation of your company:
Companies created before January 1, 2024 must file the report between January 1, 2024 to January 1, 2025.
Companies created on or after January 1, 2024 have 90 days to file the report. It starts counting from the moment the company receives its status certificate.
Access will be granted to federal, state and local officials. For foreign officials, they must submit a request through the relevant U.S. federal government agency. Financial institutions may also have access to this information under specific circumstances.
There are five types of beneficiaries that qualify as an exception and you should not report this individual to FINCEN:
It is a person who, directly or indirectly:
Yes, companies can make updates when they have had significant changes in their beneficiaries or other information. Contact us now to undergo this process with the assistance of experienced professionals.
No, in order to include a person in the BOI report who is not listed in the company records, there must be an official document demonstrating that they are given substantial authority for decision-making in the company. A useful document for this purpose is the operating agreement.