What Is FinCEN BOI Reporting?
FinCEN BOI reporting is a new mandatory filing requirement for most U.S. companies to disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Introduced under the Corporate Transparency Act of 2021, this report aims to prevent financial crimes and ensure transparency in business ownership by requiring certain entities to disclose the individuals that either have substantial ownership or substantial control over the company.
Non-compliance with this reporting obligation can result in penalties ranging from $500 per day up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.
Who Needs to File?
The following are considered “reporting entities” and are required to file unless specifically exempt:
a) An entity created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
b) a foreign company registered to do business in any U.S. state or Indian tribe by such a filing
Generally, most for-profit business entities will need to file unless they qualify for an exemption. Certain entities such as public companies, nonprofits, and inactive entities are exempt from the filing requirements. Additionally, FinCen has listed 23 specific industries that are automatically exempt.
To check if your entity qualifies for an exemption, use the Easy Beneficial Ownership Exemptions Check Tool available at fincenfetch.com.
Who is Considered a Beneficial Owner?
The following individuals are considered beneficial owners and required to be listed in the BOI report:
a) direct and indirect owner(s) who own 25% of more of a company
b) any individual that has substantial control over a reporting company, regardless of ownership. An individual that meets ANY of the following criteria is considered as having substantial control:
- Senior Officer (ex. CEO, CFO, COO, President, General Counsel)
- Individual with power to appoint or remove a Senior Officer
- Individual who directs, determines, or has substantial influence over the decisions involving the company’s business, finances, and/or structure
- Any other individual that has any other form of substantial control
How Do You File the FinCEN Report?
Businesses can submit their BOI report through FinCEN’s free online platform: FinCEN E-File.
At DPB, we have simplified the process with two convenient options:
- Streamlined Filing with FincenFetch: We have partnered with FincenFetch, a web platform designed to make BOI filing efficient and secure. To file your report using this streamlined platform, visit FincenFetch BOI Filing.
- Personalized Assistance from DPB: If you would like us to assist you with your company’s BOI filing responsibilities, please contact us at your earliest convenience.
BOI reporting is typically a one-time filing unless there are updates or changes to the previously submitted information.
What Are the Due Dates?
The deadlines for filing BOI reports depend on when the entity was created or registered:
- Entities created before January 1, 2024: Report due by January 1, 2025
- Entities created on or after January 1, 2024, and before January 1, 2025: Report due within 90 days from creation or registration
- Entities created on or after January 1, 2025: Report due within 30 days from creation or registration
Additionally, businesses impacted by recent hurricanes, including Hurricanes Beryl, Debby, Francine, Helene, and Milton, will have an extra six months to file BOI reports, as well as to update or correct previous filings.
For more information about extensions or notices related to these deadlines, visit the FinCEN website.
For any questions or additional assistance, feel free to contact your representative at DPB or call (305) 448-5585.
Stay compliant and ensure your business meets these new reporting requirements with ease.