Over 95% of Businesses Need to File BOI

Don't assume the new BOI law doesn't apply to you! This applies to over 95% of all businesses, including LLC's and S-Corps, and you don't want to be wrong on this. We are here to help you stay compliant.

What is BOI?

BOI stands for Beneficial Ownership Information -- a report that lists the individuals who own or control a company. The report is a requirement under the Corporate Transparency Act (CTA), passed in 2021. This law creates a new beneficial ownership information reporting requirement.

Who is a beneficial owner?

A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over a reporting company or owns or controls at least 25 percent of a reporting company’s ownership interests. Because beneficial owners must be individuals, trusts, corporations, or other legal entities are not considered to be beneficial owners. However, in specific circumstances, information about an entity may be reported in lieu of information about a beneficial owner.

What is substantial control?

An individual can exercise substantial control over a reporting company in four different ways. If the individual falls into any of the categories below, the individual is exercising substantial control:

1) The individual is a senior officer (the company’s president, chief financial officer, general counsel, chief executive office, chief operating officer, or any other officer who performs a similar function).

2) The individual has authority to appoint or remove certain officers or a majority of directors (or similar body) of the reporting company.

3) The individual is an important decision-maker for the reporting company.

4) The individual has any other form of substantial control over the reporting company.

What companies are required to report BOI? There are two types of reporting companies:

1) Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.

2) Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.

Need to know how to report your BOI?

If you are required to report your company’s beneficial ownership information to FinCEN, you can do this through a secure filing system available via FinCEN’s BOI E-Filing website.

BOI reporting isn't something to miss. If violated, it has fines of $500+ a day and up to two years imprisonment and a fine of up to $10,000.

Here is the deadline reminder for BOI filing

FinCEN began accepting reports on January 1, 2024.

If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.

If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.

If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective. Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

Here's an FAQ link for more information. Need HarQuin to file for you? No problem. For non-clients it’s only $75 and for clients $50.