New for 2024 - Beneficial Ownership Information Reports
What is the Beneficial Ownership Information report and how does it apply to me?
The Beneficial Ownership Information Report (BOIR) is a new filing required by FINCEN (the Financial Crimes Enforcement Network). The purpose of the filing is to disclose any person who owns 25% or more of an entity. This means that if an entity is at least 25% owned by another entity, the owners of that other entity must be disclosed, and so on and so forth until all humans associated with an entity are identified.
This filing applies to all entities registered with any state, so that includes LLCs, INCs, LLPs, and so on. The filing only needs to happen once, and then again if and when there are any changes to the ownership structure. For existing entities, this filing needs to happen no later than January 1, 2025. For new entities, this filing must be made within 30 days of the formation of the entity.
I think this applies to me - what now??
Many of our clients have entities that are required to file. We'll do our best to identify those of you this applies to and reach out to you directly. However, don't hesitate to reach out to us to enquire about your filing obligation.
The form is straightforward to fill out, but it does require some personal information that we do not readily have access to.
You can also file your own here: https://boiefiling.fincen.gov/
What if I don't file?
Please be aware, that since this is a new requirement, FINCEN does suggest that there could be some leniency for errors or forgetfulness for reporting. However, they don't stipulate an exact policy for penalty abatement. As outlined on the FINCEN website:
"As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information."
I still have more questions - what should I do?
Please visit the FINCEN FAQ page for additional information: