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"Uncovering the Importance of Corporate Beneficial Owner Reporting: What You Need to Know"

Updated: Apr 8

BOI Reporting Starter Guide: Everything You Need to Know to Prepare Your Business


BOI Reporting made simple.

A Quick Guide to Understanding the New Compliance Requirement Under the Corporate Transparency Act

Starting in 2024, many companies doing business in the United States will have to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCen), an agency under the U.S. Treasury Department. The BOI report is designed to collect information about the individuals who own or control companies operating in the U.S.

This BOI Reporting Fact Sheet should:

  • Help you Determine if you are required to file a BOI report.

  • Inform you of the information requested in a BOI report.

  • Share the reporting deadlines so that you can get this important compliance responsibility on your calendar.

  • Direct you to resources to help you understand your responsibilities and file a BOI report.

Is Your Entity Considered a Reporting Company?

  • Domestic reporting company- A Limited Liability Company, Corporation, or other entity formed or created by filing a document with a Secretary of State or similar office, under the laws of a U.S. state or Indian tribe.

  • Foreign reporting company- An entity formed or created under the laws of a foreign country that has filed a document with the secretary of state, or similar office to register to do business in any U.S. state or Indian tribal territory.

  • If Yes, and your entity doesn't qualify for an exemption from the reporting requirement, then your company must file a BOI report.





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#1: What information is required for BOI reporting?

#2: What are BOI Reporting Deadlines?


 

#1: What information is required for BOI reporting?


Company Information


Information includes: Full legal name, any DBAs, fictitious names, or trade names used to conduct business, Principal U.S. business address, Formation jurisdiction, IRS tax payer information.


Beneficial Owner Information


A beneficial owner is any individual who owns or controls at least 25% of the reporting company's ownership interests or who directly or indirectly exercises substantial control over the reporting company. Information needed includes Full legal name, date of birth, complete residential street address, personal identification number and issuing jurisdiction from a non-expired U.S. passport; state driver's license; or other ID document issued by state, local government, or tribe. They must also provide an image of their ID document. The individual may use a foreign passport if they do not have the other forms of identification.


Company Applicant Information

(Only required for domestic and foreign reporting companies created or first registered on or after January 1, 2024)



A company applicant is an individual who either directly files a reporting company's formation or registration document with a U.S. state or Indian tribe. If multiple persons were involved, the reporting company also must disclose information about the individual primarily responsible for directing and controlling the formation or registration filing.


#2: What are the BOI Reporting Deadlines?


When the beneficial ownership information report is due depends on when the reporting company was created or registered.

  • Reporting companies created or registered to do business before January 1, 2024- Initial BOI report is due by January 1, 2025.

  • Reporting companies created or registered on or after January 1, 2024 and before January 1, 2025- Initial BOI report is due within 90 days of the entity's formation.

  • Reporting companies created or registered on or after January 1, 2025- Initial BOI report is due within 30 days of the entity's formation.


BOI reports are not a recurring requirement. However, a reporting company must file an updated report within 30 days of any changes to the information about the entity or its beneficial owners.


#3: What else should you know about BOI reporting?


Consider consulting an attorney, accountant, or business advisor to determine if your company must file a BOI report and identify your beneficial owners and company applicants. Visit Fincent.gov/boi for the latest information about beneficial ownership.


A FinCen identifier is a unique number assigned upon request to a reporting company or individual. To obtain a FinCen identifier, the applicant must provide all required information. FinCen identifiers are optional; no one is required to obtain one. However after receiving a FinCen ID, that identifier may be used instead of entering certain information about beneficial owners and company applicants into the BOI report.


Ready to get started? Contact Monarch Finance Solutions via clientservice@monarchfinancesolutions.com to start the compliance reporting for your company. You can also click here to get started.


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