In a bid to enhance transparency and combat financial crimes, the Corporate Transparency Act (CTA) has introduced a pivotal requirement for U.S. businesses: the Beneficial Ownership Information Report (BOIR). Here’s what you need to know about this new mandate.
What is the BOIR?
The BOIR is a critical reporting requirement aimed at increasing transparency in business ownership. This report necessitates companies to disclose detailed information about individuals who hold significant ownership stakes, known as beneficial owners. Implemented by the Financial Crimes Enforcement Network (FinCEN), this measure seeks to prevent money laundering activities and promote corporate accountability.
Who Needs to File?
Under the CTA, most U.S. businesses are required to file the BOIR. This includes entities that are registered at the state level, with an obligation to disclose details pertaining to their beneficial owners. A “BOI” (Beneficial Ownership Information) report needs to be filed by any corporation, LLC, or other entity created by filing a document with a Secretary of State or similar office, unless they qualify for a specific exemption under the Corporate Transparency Act (CTA); essentially, most businesses formed in the United States need to file a BOI report, including foreign companies registered to do business in the US.
The information required includes:
- Full legal name
- Date of birth
- Current residential or business address
- A unique identifying number, like a passport or driver’s license number
Filing Deadline
For businesses that were registered before the implementation of this law, the deadline to file the BOIR is January 13th, 2025. It’s crucial for these businesses to ensure compliance by this date to avoid any legal repercussions.
Penalties for Non-Compliance
Failing to file the BOIR or providing inaccurate information can lead to severe penalties. Non-compliance may result in fines of up to $592 per day.
This is not legal advice. For more detailed information or to file your report, please speak with your accountant or attorney and visit the official BOIR page.
