Do you need to file a BOI Report?
- Quanice
- Jan 2, 2024
- 2 min read
Updated: May 21
We've received numerous inquiries regarding what this implies for your business. Below are the most frequently asked questions and answers, as well as ways to fulfill your obligations.
What is meant by beneficial ownership information?
Beneficial ownership information pertains to identifying details about the individuals who directly or indirectly own or control a company.
Why is it necessary for companies to report beneficial ownership information to the U.S. Department of the Treasury?
In 2021, the Corporate Transparency Act was passed on a bipartisan basis by Congress. As part of the U.S. government's efforts to make it more difficult for nefarious actors to conceal or profit from their illicit gains through shell companies or other opaque ownership structures, this legislation establishes a new requirement for reporting beneficial ownership information.
In layman's terms, the government is seeking to prevent money laundering and other financial fraud, which is why the Financial Crimes Enforcement Network is tasked with performing this responsibility.
Is my business required to file?
More than likely...
Doesn't the government already have this ownership information?
The state in which you filed the information may or may not have required you to report the owner of your business. However, it is even less common for states to require the reporting of all owners and their percentage of ownership.
It's important to note that this request is coming from the federal government. The only instance where you are required to disclose that you have an entity is when obtaining an EIN from the IRS, and they do not require you to list all the owners. States are not obligated to report or transfer any business entity's information to the federal government.
Therefore, the answer is no, the federal government does not already have this information. This will be a first-of-a-kind request that may be viewed as intrusive, but it is now the law we must comply with to remain legally compliant.
Will there be a fee for submitting a beneficial ownership information report to FinCEN?
No. If you do it yourself here. There will be no fee for submitting your beneficial ownership information report to FinCEN.
Filing the Electronic Report:
Beginning January 1, 2024, reports can be filed electronically on FinCEN’s secure website. Initial reports are due by January 1, 2025, for pre-existing companies or 30 days after the formation of new companies. Updates must be filed within 60 days when beneficial ownership changes.
However, compiling the right information and submitting it correctly can be challenging.
Q Inspires Inc. was created to assist businesses and their advisers in submitting regulatory forms and reports in a timely, compliant, and stress-free manner.
To ensure our clients can file BOI reports accurately and on time, we help you cut through the red tape and reduce the risk of errors that can lead to noncompliance fines and headaches.
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