BOI Reports

The Corporate Transparency Act (CTA)

On January 1, 2024, The Corporate Transparency Act (CTA) went into effect, requiring certain small businesses—’reporting companies’—to file a Beneficial Ownership Information (BOI) Report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

The Act aims to combat illicit financial activities and enhance transparency by requiring certain businesses to disclose their beneficial ownership information. It is imperative for all firms to understand and comply with the regulations to ensure transparency and integrity within the corporate sector.

What qualifies as a Reporting Company?

The CTA defines reporting companies as any non-exempt entity created or registered to do business in the U.S., such as corporations, limited liability companies (LLCs), and other similar entities. Visit the FinCEN Beneficial Ownership Information Reporting website for updated requirements.

Specifically, the Act applies to entities that meet the following criteria:

Beneficial Ownership Information (BOI) reporting

Reporting companies are required to submit accurate and up-to-date beneficial ownership information to FinCEN. This information includes details about individuals who directly or indirectly own or control a significant portion of the company. Key elements to be reported include:

1. Full legal name, date of birth, and residential or business address of each beneficial owner.
2. A unique identification number from an acceptable identification document (e.g., driver’s license or passport) for each beneficial owner.

How and when do I report?

A report must include information pertaining to the company itself, each beneficial owner, and if the company was formed on or after January 1, 2024, the company applicants. To prepare for reporting, we recommend the following steps:

1. Conduct a thorough review of your business’s ownership structure.
2. Identify individuals who meet the criteria for beneficial ownership.
3. Gather the necessary information required for BOI reporting.
4. Refer to the FinCEN official BOI guidelines and deadlines for compliance.

The deadlines for compliance with the reporting requirements are as follows:

Want to do it yourself?

The below video was produced by FinCen and provides for detailed instructions on if you want to file the returns yourself: