Beneficial Ownership Information refers to identifying information about the individuals who directly or indirectly own or control a company. This reporting is an initiative put in place to reduce financial crimes through corporations, obtain accurate reporting, prevent legal issues, and hold owners liable for entity activities and reporting.
As you may know the Financial Crimes Enforcement Network (FinCen) has launched an e-filing system to report the Beneficial Ownership of certain US and Foreign entities under the Corporate Transparency Act (CTA). The CTA requires certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
BOI Court Ordered Suspension - Please note that beneficial ownership information reporting requirements have been affected by a recent federal court order. The Department of the Treasury is appealing that order. In the meantime, companies are not currently required to file a BOIR and will not be penalized if they fail to file while the applicable order remains in force.
However, reporting companies may still opt to file a BOI.
Beneficial owners are individuals who exercise significant control or own a substantial interest in the entity.
What companies must file?
Companies required to report are called reporting companies. Owners with multiple entities must report all non-exempt entities.
There are two types of reporting companies:
Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
There are 23 entity types that are exempt from the beneficial ownership information reporting requirements.
When is the deadline to file the BOI
BOI’s must be filed by January 1, 2025.
How to file the BOI
The BOI filing can be completed online at https://boiefiling.fincen.gov/fileboir as a PDF document or thru the online form.
What is the filing fee
FinCen does not charge a reporting fee all BOI submissions are free.
Who is exempt
23 business exemption categories:
Exemption No. Exemption Short Title
1 Securities reporting issuer
2 Governmental authority
3 Bank
4 Credit union
5 Depository institution holding company
6 Money services business
7 Broker or dealer in securities
8 Securities exchange or clearing agency
9 Other Exchange Act registered entity
10 Investment company or investment adviser
11 Venture capital fund adviser
12 Insurance company
13 State-licensed insurance producer
14 Commodity Exchange Act registered entity
15 Accounting firm
16 Public utility
17 Financial market utility
18 Pooled investment vehicle
19 Tax-exempt entity
20 Entity assisting a tax-exempt entity
21 Large operating company
22 Subsidiary of certain exempt entities
23 Inactive entity
If you haven't already filed your BOI contact Xecutive Drive immediately at 1-888-330-9466 or email a request to admin@xecutive-drive.com to file your BOI on your behalf.
Reference: https://boiefiling.fincen.gov/
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