Who is required to file a BOI report?
Who is required to file a BOI report?
Entities such as corporations, limited liability companies (LLCs), and other similar entities that are registered in the United States or conducting business in the U.S. are generally required to file BOI reports.
Criteria for who is required to file a BOI Report
Entities required to file a Beneficial Ownership Information (BOI) report include corporations, limited liability companies (LLCs), and other similar entities that meet certain criteria under the FinCEN regulations. Specifically, the following entities are required to file:
Domestic Reporting Companies:
Corporations, LLCs, or other entities created by the filing of a document with a Secretary of State or similar office under the laws of a state or Indian Tribe.
Foreign Reporting Companies:
Corporations, LLCs, or other entities formed under the laws of a foreign country and registered to do business in the U.S. by filing a document with a Secretary of State or similar office under the laws of a state or Indian Tribe.
BOI Exemptions:
Certain entities are exempt from filing BOI reports due to their nature or the level of regulation they are already subject to. These exemptions include:
Large Operating Companies: Entities with more than 20 full-time employees in the U.S., more than $5 million in gross receipts or sales, and an operating presence at a physical office within the U.S.
Governmental Entities: Federal, state, and local government agencies.
Regulated Entities: Banks, credit unions, insurance companies, registered public accounting firms, and others already subject to substantial federal or state regulation.
Inactive Entities: Entities that have been in existence for more than one year, are not engaged in active business, and do not hold assets of any kind.
BOI Reporting Requirements:
Entities that are required to file must provide detailed information about their beneficial owners. This includes:
Identification Information: Full legal name, date of birth, current residential or business street address, and a unique identifying number from an acceptable identification document (e.g., passport, driver’s license).
Ownership Information: The nature of the ownership or control interests held by each beneficial owner, including the percentage of ownership interest and any substantial control over the entity.
Beneficial Owner Definition:
A beneficial owner is any individual who, directly or indirectly:
Owns 25% or more of the equity interests of the entity.
Exercises substantial control over the entity, such as a senior officer or a person with significant influence over important decisions.
Entities must update their BOI reports whenever there are changes in beneficial ownership information, such as changes in ownership percentages, control, or personal details of beneficial owners.
BOI Filing Deadlines:
New Entities: Must file a BOI report within 30 days of their formation or registration.
Existing Entities: Must file their initial BOI report by a specified date each year and update it within 30 days of any change in beneficial ownership information.
Ensuring compliance with these requirements is crucial to avoid penalties and legal issues. Our firm provides expert assistance to help you navigate these regulations and maintain compliance.