BOI Filing Requirements

As of 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has introduced new filing requirements for beneficial ownership. These requirements are designed to increase transparency, reduce illicit financial activity, and help law enforcement identify bad actors who might be hiding behind layers of shell companies. This new regulation is part of the Corporate Transparency Act (CTA), which aims to make it harder for criminals to use anonymous entities for financial crime.

What Is Beneficial Ownership (BOI) and Why Is It Important?

In simple terms, a beneficial owner is anyone who has substantial control or owns at least 25% of a business entity. This can be an individual with significant power to make decisions, or someone with a large financial stake. The FinCEN reporting requirements target entities like corporations, LLCs, and similar business structures to ensure that these beneficial owners are properly identified.

Who Needs to File for Beneficial Ownership (BOI)?

Most small to medium-sized businesses will need to comply with the new reporting requirements. For example, if you own a small LLC that provides consulting services, or if you have an LLC owned by a trust that holds real estate, you will need to file. Certain entities are exempt, such as those with over 20 full-time employees and more than $5 million in annual revenue. Specifically, any corporation or LLC—including foreign entities registered to do business in the United States—is subject to the new rules.

BOI Filing Requirements: What Information Do You Need?

To make the process easier, here is a quick BOI filing checklist of the documents and information you’ll need to gather before filing:

• Full Legal Name of each beneficial owner
• Date of Birth for each beneficial owner
• Current Residential or Business Address for each beneficial owner
• A Unique Identifying Number (e.g., driver’s license or passport number) for each beneficial owner

Frequently Asked Questions

• Do I need to file BOI if my business has no beneficial owners?
  If your business does not have any individuals meeting the definition of a beneficial owner, you may still need to file to confirm this with FinCEN.
• What documents are required for BOI filing?
  You will need documents like the EIN, Articles of Organization, and identification for beneficial owners.
• How do I know if my LLC is exempt from BOI filing?
  Certain LLCs, such as those with over 20 employees and \$5 million in annual revenue, may be exempt from filing.

The goal here is to ensure that every business entity has transparency about who truly owns and controls it. The information submitted to FinCEN will not be made public but will be available to law enforcement agencies and financial institutions for due diligence purposes. Rest assured, your information will remain confidential and will not be accessible to the general public.

Deadlines and Filing Requirements

For entities formed after January 1, 2024, the beneficial ownership information must be reported within 30 days of registration. Entities formed before 2024 have until January 1, 2025, to comply with these new requirements.

Reports must be updated whenever there are changes in beneficial ownership—whether that’s a change in control, a new owner exceeding the 25% ownership threshold, or simply a change in address. The updating deadline is 30 days from the change.

Penalties for Non-Compliance

Act now to avoid penalties of up to $500 per day—book your consultation with us today. Businesses could face fines of up to $500 per day, with possible criminal penalties if there’s willful neglect. It’s important to ensure that businesses file accurately and promptly to avoid these costly outcomes.

Why This Matters

For many business owners, these new requirements may feel like just another layer of bureaucracy, and we completely understand that frustration. Regardless of how we feel about it, these requirements are mandatory, and thankfully, they are relatively straightforward to complete. By staying on top of these filings, businesses can ensure they remain compliant and avoid any potential penalties.

How Avrio Solutions Can Help with BOI Filing

To make things easier, FinCEN has provided an instructions sheet that can guide you through each step. You can access it directly here. This resource details the necessary information, required documentation, and submission procedures to ensure compliance.

Navigating these requirements can feel overwhelming. We understand that you already have a lot on your plate, and adding compliance paperwork can feel like just another burden. At Avrio Solutions, we offer this filing as a service to our clients, and if you’d like assistance, you can book a consultation with us to determine which of your entities require filing. Whether you need guidance or want us to handle the entire process, our team is ready to assist.