In recent years, there’s been a significant shift in how businesses operate within the United States, particularly concerning transparency and accountability. If you’re a business owner or planning to start a company, you’ll want to be aware of the Beneficial Ownership Information (BOI) Reporting requirements that have come into effect. In 2021, the Corporate Transparency Act (CTA) was enacted as part of the National Defense Authorization Act, marking a major overhaul of the Bank Secrecy Act and related anti-money laundering regulations. The aim? To combat money laundering, terrorism financing, and other forms of illicit financial activity. Under the CTA, most businesses — including
corporations and limited liability companies operating in the U.S.— are now expected to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
Who Does This Affect?
If you’re starting a new business, you’ll need to file your BOI report within 90 days of your formation or registration. Existing businesses that were established before January 1, 2024, must submit their reports by January 1, 2025. This applies to both U.S.-based companies and some foreign entities registering to operate in the U.S.
What’s Required?
To complete the BOI filing, you’ll need to gather a few key pieces of information: - A copy of each beneficial owner’s driver’s license or passport - Personal and business addresses - The Business Employer Identification Number (EIN) It’s also important to note that you’ll need the personal information of all listed owners and their spouses, unless there’s documentation indicating that the spouse does not financially benefit from the business’s earnings.
Are There Exemptions?
Yes! There are certain exemptions to these requirements, particularly for non-profit organizations and larger operating companies that have at least 20 full-time employees and gross revenues exceeding $5 million from the previous year’s tax return.
Need Help with Filing?
Navigating these requirements can be daunting, but you don’t have to do it alone. Dynamic Law Group offers comprehensive services to complete your BOI filing.
However, If you prefer a DIY approach, you can find step-by-step guidance through https://boiefiling.fincen.gov.
UPDATE: In response to the February 18, 2025 decision by the U.S. District Court for the Eastern District of Texas in Smith et al v. US Department of the Treasury et. al., FINCEN has announced a new deadline of March 21, 2025 for most companies to complete a BOI report.
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