What is the Beneficial Ownership Information Reporting (BOIR)
The Beneficial Ownership Information Reporting (BOIR) is mandatory for all LLCs, Corporations, and Non-profits that fall outside the exempt status as stipulated by the FinCEN. You must submit identifying details regarding individuals who own or control your company, either directly or indirectly, to the Financial Crimes Enforcement Network. This is necessary to comply with the Corporate Transparency Act, with the Beneficial Ownership Information Reporting Rule taking effect on January 1, 2024. Understanding this new law is crucial due to the serious consequences of non-compliance, including imprisonment and substantial fines.
What you need to file your beneficial ownership information report
Tax ID for the business—either your SSN or the EIN
Personal information like name, date of birth, and address
Government-issued ID for each owner
Let us help you file in a compliant and stress-free way
What is the Beneficial Ownership Information Reporting Rule?
The Corporate Transparency Act's Beneficial Ownership Information Reporting Rule, implemented by the Financial Crimes Enforcement Network (FinCEN) within the U.S. Department of the Treasury, introduces a fresh filing obligation. This requirement aims to shed light on company ownership arrangements, aiding the federal government in combatting various financial crimes and fraudulent activities, including money laundering, corruption, human and drug trafficking, tax evasion, and fraud against employees, customers, and other businesses.
By mandating the disclosure of beneficial ownership information, the rule bolsters the U.S. government's ongoing endeavors to discourage corporations from concealing or profiting from actions that inflict harm on others.
Who is a beneficial owner?
According to the Corporate Transparency Act, a beneficial owner is an individual who directly or indirectly meets one of the following criteria: (1) owns or controls at least 25% of the company's ownership interests, or (2) exerts significant control over the business. Examples of individuals who may exercise substantial control include:
A key decision-maker within the reporting company
A high-ranking executive (such as president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any equivalent officer)
An individual with the authority to appoint or remove specific officers or a majority of directors (or a similar governing body) of the company.
What are the penalties for not filing?
Every business must submit a Beneficial Ownership Information Report, detailing all individuals who control or own the business. However, a beneficial owner who knowingly disregards the reporting requirements and guidelines, or provides false information to the Financial Crimes Enforcement Network, will bear personal responsibility. They may face both criminal and civil repercussions for violating the Corporate Transparency Act.
Noncompliance can result in criminal penalties, including imprisonment for up to two years and/or fines of up to $10,000, as well as civil penalties of up to $500 per day.
Even if a reporting company submits the report on schedule, penalties may still apply if the information provided is inaccurate. It's crucial that the filing company ensures accuracy to adhere to the law. We offer simplified reporting and filing processes to help guarantee precise submissions and compliance with relevant regulations.
When is the Beneficial Ownership Information Report deadline?
With the Beneficial Ownership Information Reporting Rule coming into effect on January 1, 2024, it's crucial to familiarize yourself with the requirements promptly. Understanding the deadline, which varies based on your formation date, is essential. We can assist you in determining your formation date and provide notifications as your filing deadline approaches.
Typically, businesses established before January 1, 2024, must file by December 31, 2024. Those formed on or after January 1, 2024, have 90 days after formation to file. If a business amends its formation documents on or after January 1, 2024, it has 30 days to submit a new report.
Meeting this obligation is vital to avoid potential criminal and civil penalties for noncompliance, including imprisonment for up to two years, fines of up to $10,000, and daily fines of up to $500.
What is in the Beneficial Ownership Information Report?
The Beneficial Ownership Information Report encompasses various details about the reporting company, including its complete legal name, any trade or DBA names, address, federal tax ID number (or EIN), and the jurisdiction of its creation.
Additionally, the report entails the full legal names, birth dates, current addresses, and images of acceptable identification documents (such as passports or driver's licenses) of the owners. It also includes information on the issuing jurisdiction and the document's ID number. If the individual who filed the entity formation documents (referred to as the applicant) is not among the beneficial owners, they must also furnish the same information.
Our service streamlines the reporting and filing process required by the Financial Crimes Enforcement Network, alleviating the burden of adhering to deadlines and ensuring accurate submission of your report, thereby saving you time and reducing stress.
How are LLCs impacted by the Beneficial Ownership Information Reporting Rule?
Owners of a limited liability company (LLC) are obligated to submit the new report to the federal agency, furnishing essential contact details regarding the company and its owners, commonly referred to as members. This mandate applies to both single-member and multi-member LLCs.
Who is exempt from BOIR Reporting?
The majority of small business entities are not eligible for exemption from this requirement. Exempt entities from beneficial ownership information reporting comprise publicly traded companies, tax-exempt nonprofit organizations, specific large operating companies, and others meeting defined criteria. The Financial Crimes Enforcement Network delineates 23 types of exempt entities that do not fall under the category of reporting companies, along with certain individuals ineligible for listing as beneficial owners under this reporting obligation.
Why use Prompt Biz to file a Beneficial Ownership Information Report?
Navigating a new law that imposes civil and criminal penalties, including imprisonment and fines, can be intimidating. However, our simple and precise report-filing service eliminates the concern and risk associated with meeting this requirement.
Expert assistance: Leave the burden of FinCEN reporting with our professionals. We guarantee timely and thorough filings to provide peace of mind.
Secure Filing: Enjoy peace of mind knowing that your data is safeguarded. We securely gather and submit your information to the Financial Crimes Enforcement Network (FinCEN).
Proof of acceptance: We simplify record-keeping by providing the official transcript upon acceptance of your filing.
Best Industry price: While our competitors typically charge $149, we offer our services for only $69.99. You might wonder why. The answer is straightforward: we are committed to providing the best industry prices as a guarantee to our customers, and we're simply delivering on that promise.
Ready to file your report? Let us help you file in a compliant and stress-free way!
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