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New Business Reporting Requirements



Woman looking at financial reports.

This update explains new requirements for certain businesses to file information with the Financial Crimes Enforcement Network (FinCEN) about their ownership. This is called Beneficial Ownership Information (BOI) reporting. The responsibility to file the initial BOI report and any updates falls on the business itself. Please READ THIS LETTER IN ITS ENTIRETY as there are significant penalties for failure to file. We cannot file the report on your behalf but are providing the information needed for you to file.


Who Needs to File?

  • Corporations (e.g., Inc., Corp.)

  • Limited Liability Companies (LLCs)

  • Any other business entity created by filing a document with a secretary of state or similar office (e.g., limited partnerships, business trusts)


Filing Deadline:

  • Businesses formed or registered in the US before January 1, 2024 need to file by January 1, 2025.

  • Businesses formed or registered in the US on or after January 1, 2024 need to file within 90 days of receiving notice that their formation or registration is complete. (This timeframe shortens to 30 days after January 1, 2025).


Failure to File Penalties:

Please be aware that there are significant penalties for failing to file a BOI report or for filing inaccurate information. These penalties can be civil or criminal and include:

  • Civil Penalties: Up to $591 per day that the violation continues.

  • Criminal Penalties: Up to two years in prison and a fine of up to $10,000.


How to File Your BOI Report:

You can file your BOI report electronically through the FinCEN BOI E-Filing System at FinCEN BOI E-Filing. The system will guide you through the process


What Information is Required About Your Business?

  • Legal Name: The official name your business operates under.

  • Business Address: The physical location of your business.

  • Filing Identifier: This may be your Employer Identification Number (EIN) or another government-issued identifier.

  • Formation/Registration Date: The date your business was officially formed or registered in the US.

  • North American Industry Classification System (NAICS) Code: A code that identifies your industry type. You can find your NAICS code at NAICS Association at https://www.naics.com/search/ or by clicking the button below.



 

Who is a Beneficial Owner?

A beneficial owner is someone who ultimately owns or controls at least 25% of the company's shares or voting rights. This could be an individual or another company.


What Information is Required About Each Beneficial Owner?

  • Full name

  • Date of birth

  • Address

  • Identification document number and issuing agency (e.g., driver's license number)

  • An image of the identification document (securely uploaded) 


What is a Company Applicant and What Information is Required?

For companies formed after January 1, 2024, you will also need to report information about the initial individual(s) who filed to form the company (these are the company applicants). The information required is the same as for beneficial owners (name, date of birth, address, ID info, and image).


NOTE: If we assisted with your formation/registrations, in lieu of the above applicant information, you may use FinCEN Identifier #3000-0000-3798. This is only applicable if we formed you.


Required Updates Must be Reported Within 30 Days. These include:

  • Any changes to the information you originally reported about your business (e.g., address change).

  • Any changes to your beneficial ownership structure, including:

  • A beneficial owner acquiring or disposing of 25% or more of the company's ownership or control.

  • Changes to a beneficial owner's identifying information (name, address, renewed driver’s license…etc.).


We Are Here to Help!

While we cannot file the report for you, we are happy to answer your questions and advise you on navigating the BOI reporting process. Please do not hesitate to contact us if you need assistance. You can find the reporting FAQs at https://www.fincen.gov/boi-faqs.



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