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  • Writer's pictureMilan Solarz-Patel

FinCEN News: less than 20 days until BOI reporting starts for small businesses (i.e., LLCs)

What are the steps for Beneficial Ownership Reporting compliance?

To ensure compliance with the Beneficial Ownership Information (BOI) Reporting requirements that start in 2024, follow these steps:

Step 1: Determine if Your Company Must Report

  • Check Reporting Company Status: Review if your company is a "reporting company" under FinCEN's guidelines.

  • Assess Exemptions: Determine if any exemptions apply to your company (e.g., entities like banks, credit unions, insurance companies, etc., are exempt).

Step 2: Identify Beneficial Owners

  • Substantial Control: Identify individuals with substantial control over the company, including senior officers.

  • Ownership Interests: Determine who owns or controls at least 25% of the company’s ownership interests.

  • Exceptions Consideration: Assess if any exceptions apply to potential beneficial owners (e.g., minor children, nominees, employees without significant control, inheritors, creditors).

Step 3: Identify Company Applicants (if applicable)

  • Required for companies created or registered in the U.S. on or after January 1, 2024.

  • Direct Filer: The individual who directly filed the formation or registration documents.

  • Individual Directing/Controlling Filing: The person primarily responsible for the filing action.

Step 4: Gather Required Information

  • For the Company: Legal name, DBA name, address, jurisdiction of formation, TIN, etc.

  • For Each Beneficial Owner/Company Applicant: Legal name, date of birth, address, an image of a valid ID, etc.

Step 5: File the Initial BOI Report

  • Timing: Existing companies must file by January 1, 2025. New companies created between January 1, 2024, and January 1, 2025, have a 90-day window post-registration for filing; those created on or after January 1, 2025, have a 30-day window.

  • Submission Process: File electronically via FinCEN’s secure filing system (available from January 1, 2024).

Step 6: Update and Correct Information

  • Updates: File an updated BOI report within 30 days of any changes in beneficial ownership or company information.

  • Corrections: Correct inaccuracies in a BOI report within 30 days of discovery.

Step 7: Obtain and Use FinCEN Identifier (Optional)

  • Individuals or companies can apply for a FinCEN identifier to streamline reporting processes.

  • Update FinCEN identifier information as necessary.

Additional Tips

  • Stay Informed: Regularly check FinCEN’s website and guidance materials for updates.

  • Record Keeping: Maintain accurate and up-to-date records of all information and correspondence related to BOI reporting.

  • Seek Professional Advice: Consider consulting with legal or financial professionals for guidance specific to your company’s situation.

Important Notes

  • This guide is a general overview and should not be considered legally binding advice.

  • Always refer to the most current information and regulations provided by FinCEN.

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