The Beneficial Ownership Information (BOI) reporting requirements, established under the Corporate Transparency Act and implemented by the Reporting Rule on September 30, 2022, aim to increase transparency in business ownership. Here's an educational breakdown of the key aspects of BOI reporting and recent updates:
Who Must File BOI Reports?
BOI reports are required for entities classified as “reporting companies,” which fall into two categories:
- Domestic Reporting Companies: U.S.-based entities that meet the definition of a reporting company.
- Foreign Reporting Companies: Non-U.S. entities registered to do business in the United States.
Entities that do not meet these definitions or qualify for specific exemptions are not required to file BOI reports.
What Information is Required?
The BOI report includes:
- Entity Information: Details about the reporting company itself.
- Beneficial Owners: Individuals who own or control at least 25% of the company or have substantial control.
- Company Applicants: Individuals responsible for filing the documents that created or registered the company.
Filing Deadlines
The deadlines for BOI filing depend on when the reporting company was created or registered:
- Created/Registered Before January 1, 2024: Initial BOI reports are due by January 1, 2025.
- Created/Registered Between January 1, 2024, and January 1, 2025: BOI reports must be filed within 90 days of the company receiving actual or public notice of its creation or registration.
- Created/Registered On or After January 1, 2025: Reports are due within 30 days of receiving actual or public notice.
How to File
Starting January 1, 2024, BOI reports must be filed electronically through FinCEN’s secure filing system. The information provided will be stored in a centralized database protected with advanced federal security measures, ensuring data confidentiality and accessibility only to authorized users for specific purposes defined by law.
Recent Updates (as of March 7, 2025)
To give businesses more time, FinCEN has extended the filing deadline to March 21, 2025
Key Takeaway
If you own or manage a business, it’s essential to stay informed about BOI filing requirements and deadlines. For additional guidance, consult FinCEN resources or a legal advisor familiar with compliance regulations.
