How to File a BOI Report with FinCEN: What to Know About the New Filing Requirement Resulting From the Corporate Transparency Act

In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

Some key points for learning about the filing requirement

• A BOI report can be filed without charge on FinCEN's official website

• Beware of scams or online ads that may divert you or charge excessive fees to file the report

• For simple legal structures, filing time is minimal and can likely be done without the assistance of a lawyer or accountant

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.

• An official overview of the new filing requirement is available at the following link: Small Entity Compliance Guide

Understanding the BOI Report

The BOI report is a tool being used by the government to combat financial crimes like money laundering and terrorist financing. It requires covered legal entities to disclose information about their beneficial owners – individuals who ultimately own or control the entity. By providing transparency on ownership structures, the BOI report helps law enforcement agencies track illicit financial activities and enforce financial integrity.

Who Needs to File?

Businesses that fall into the category of covered legal entities are obligated to file the BOI report. These entities include corporations, limited liability companies (LLCs), and other similar business structures. Being aware of whether your business is classified as a covered legal entity is the first step towards fulfilling your reporting obligations.

How to File

Filing the BOI report with FinCEN involves submitting the required information through the Financial Crimes Enforcement Network's secure system. The process entails providing details about each beneficial owner, including their full legal name, address, date of birth, and identification number.

Where to File

To initiate the filing process, new filers can access the FinCEN website (link above) and navigate to the BOI report filing portal. The portal provides step-by-step guidance on filling out the necessary fields and submitting the required information securely. Additionally, FinCEN offers resources such as user guides and FAQs to assist filers in understanding the reporting requirements and technical aspects of the filing system.