How to File a Beneficial Ownership Information Report (BOIR)
If you’ve been hanging around the entrepreneur water cooler lately, you might have heard fellow business owners fretting about the upcoming deadlines for filing a beneficial ownership information report, also known as a BOIR. Or maybe you were thinking, “What is this? I haven’t even heard of it.”
Well, that’s because it’s a new requirement. Talk online has heated up as the deadline for 2024 is coming up.
In this post, I will tell you what you need to know to understand the BOIR, what it means to you, and how to file it to avoid pricey late fees.
What is the Beneficial Ownership Information Report?
The Corporate Transparency Act (CTA) was enacted by Congress in 2021 and aims to enhance financial transparency and fight illegal activities. It is designed to prevent shell companies from facilitating illicit activities such as:
money laundering
terrorism financing
tax evasion
The law requires that certain types of business entities report their beneficial owners to the Financial Crimes Information Network (FINCAN).
A beneficial owner is a fancy way of saying who owns, controls, or has significant influence over a business. As a solopreneur, you are a beneficial owner.
Who Must File a Beneficial Ownership Information Report?
The CTA requires reporting from domestic and foreign reporting companies.
Domestic reporting companies are those entities created by filing documents with a state authority. Basically, if you registered with your Secretary of State, you must file a BOIR report. This means if you have an LLC, S-corp, partnership, or c-corporation, you are subject to reporting.
Are There Any Exemptions to the BOIR Filing?
The CTA provides over 23 exemptions, but most would not apply to solopreneurs. Talk to your attorney if you think you might be eligible for an exemption.
What Information is Required on a BOIR Filing
When you file your BOIR, you will provide company information that includes:
Legal name
Any other trade or DBA names
Business address
Jurisdiction where registered (generally your state)
Your taxpayer identification number (EIN or social security number)
You’ll also provide information on the beneficial owners. This is anyone who owns 25% or more of the company. For each beneficial owner, you’ll provide:
Full legal name
Date of birth
Home address
Identification number (such as from a passport or driver’s license)
Impage of the identification document.
What is the Deadline for Filing a BOIR?
If your company was created or registered before January 1, 2024, your BOIR must be submitted by December 31, 2024.
If it was created or registered between January 1, 2024, and January 1, 2025, it’s due within 90 calendar days of receiving notice of creation or registration.
If you create or register your company after January 1, 2025, your BOIR filing is due within 30 days of receiving notice of creation or registration.
How to File a BOIR
Go to the FinCen’s BOI e-filing website.
Beware of scams! Make sure you are using the official FinCen website. There are many third-party websites and companies that are offering to help you file your report, often for hundreds of dollars (or more). However, a report for a solopreneur or small business will take less than 20 minutes to complete.
From the FinCEN website, select the button for the BOI filing button. From here, you can either complete it via PDF (allowing you to complete it offline, at your own pace) and then submit it, OR you can complete it and submit it online.
What Are the Penalties for a BOIR Late?
Filing the BOIR late comes with very stiff financial penalties.
Civil penalties of up to $500 per day
Criminal penalties, including fines of up to $10,000 and imprisonment for up to two years.