BOI reporting information
Many have heard about this new “BOI” filing that is now required for most every business. However, it has not been very well publicized by the government, and not many people understand what is going on.
Congress passed the “Corporate Transparency Act” back in 2021. In this act, was a provision for FinCEN (Financial Crimes Enforcement Network) to be able to collect personal data on the owners of any US based businesses.
FinCEN is involved with monitoring for money laundering, criminal financial activity, shell companies, and foreign ownership in US companies. I know most of us don’t want any more government intrusion in our businesses… but it is now the law, and there are some very hefty fines if the BOI reporting is not completed. $591 per day the report is late, and up to $10,000 fine for willfully neglecting to file!
You can file the BOI report yourself here: https://boiefiling.fincen.gov
If you choose to file yourself, please let me know it was completed so I can make a note on your files with us
I can file the report for you for a fee of $85 which can be added to your tax bill when we file next year. Please let me know if you want me to do this.
If you wish to have someone file the BOI report for you, do not use a vague internet provider since this is sensitive information.
When to file:
If you were in business prior to January 1st this year, you have until December 31st to file your BOI report.
New businesses that started in 2024 have 90 days after filing documents with the state of Ohio.
Who is required to file:
C-corporations, LLC’s, partnerships, S-corporations, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States. (Non-profits are exempt)
See the list of exempt companies here: https://www.fincenfetch.com/boi-report-exemptions/
Exemptions:
If you are operating as a sole-proprietorship AND you did not file documents with the secretary of State, you are exempt from filing the BOI. BUT if you did file anything with Ohio (name reservation, LLC forms, etc) your are required.
If you have a business with more than $5 million gross revenue AND at least 20 employees you are NOT required to file a BOI. (The government already knows everything about you)
Who is a beneficial owner?
A beneficial owner is any individual who, directly or indirectly:
- Exercises substantial control over a reporting company;
- OR
- Owns or controls at least 25 percent of the ownership interests of a reporting company.
An individual might be a beneficial owner through substantial control, ownership interests, or both.
An individual exercises substantial control over a reporting company if the individual meets any of four general criteria:
- the individual is a senior officer;
- the individual has authority to appoint or remove certain officers or a majority of directors of the reporting company;
- the individual is an important decision-maker; or
- the individual has any other form of substantial control over the reporting company.
What needs to be reported for each owner?
A Reporting Company must report the followings information for each of its beneficial owners:
- Full legal name
- Date of birth
- Current residential address
- Unique Identifying Number from a non-expired state or government issued ID (U.S. passport, State driver’s license, etc.)
Confidentiality
Information filed with FinCEN under the Corporate Transparency Act is confidential and is not disclosed to the public. Law enforcement can access this information to investigate potential financial crimes.
Where you can file:
Directly online with FinCEN https://boiefiling.fincen.gov