BOI - Beneficial Ownership Information
Dr. Larry McClelland, DBAJanuary 16, 2025
The Beneficial Ownership Information Report (BOIR) is a document with the purpose of identifying who is truly responsible or the executor over a legal business entity. The United States Government has positioned the Financial Crimes Enforcement Network (FINCEN) to be the overseer of this requirement. Ideally, their main objective is to increase transparency in business ownership, help decrease money laundering and combat illegitimate money fraud activities.
The governing law for the BIOR is the Corporate Transparency Act (CTA) of 2021, introduced by House Bill 2513 of the United States Congress, which requires certain businesses to file BOIRs with FINCEN of the United States Department of Treasury. This CTA was enacted by the United States Congress on January 1, 2021, as part of the National Defense Authorization Act. The mission of the CTA in BOI reporting is clear with the following objectives: - Increase transparency in business ownership - Require businesses to disclose important details about ownership - Preventing money laundering, tax fraud, financing terrorism
The effective date of BOIR commenced on January 1, 2024, and is the official date of which FINCEN started accepting BOI filing on their website. Business owners who are directly or indirectly in control over a business and business owners who control at least 25% of a business are required to file a BOIR through FINCEN. There are certain limited conditions where some businesses are exempted through CTA exemptions from filing a BOIR. I truly recommend seeking legitimate certified legal advice before assuming that your business meets those exemption guidelines. The penalties of non-compliance or failure to file in a timely manner can result in a $500-per-day fine, up to $10,000 in total.
As this legal requirement is a newly introduced rule, the dates of compliance have been shifting due to the national filing of certain courts of appeals. It is recommended that affected businesses still voluntarily file BOI reports with FINCEN. You should seek legal advice before finalizing this decision.
Effectively complying with BOIR standards can immensely benefit business owners in establishing a transparent level of trust with the United States Government and its identified responsibilities, potential business partners and investors, and more importantly the American and foreign consumers of the products and services they provide. Mature business owners must understand that it is important to follow and understand the intricacies of issuing export licenses, loan approvals, grants, government contracts and many more financial understandings of fair transparent business practices.
BOI efiling: Step – by – Step Instructions (Simplified - Internet Only)
Complete Filing Instructions and Methods | FINCEN | Click Here
1. Collect all necessary documents related to your business and its owners - State issued non-expired driver’s licenses, state identification, or United States Passport - EIN (Employer Identification Number) or Tax Identification Note: Documents and Identification must be clear and readable. 2. Go to boiefiling.fincen.gov on a web browser.3. Select the Prepare & Submit BOIR link/icon. (Web)4. Input and complete all required information in the four tabs: - Home - Reporting Company - Company Applicant(s) - Beneficial Owner(s)5. After all required information has been entered you will see the Ready To File button. 6. Click the Submit BOIR button. 7. Read the WARNING! Prompt. Click I Agree.8. Wait for submission to complete processing.9. Verify Status.10. Print and save documents for your references.
BOI | Frequently Asked Questions | FINCEN | Click Here
Important related readings can be found on the following websites:- Financial Crimes Network | Beneficial Ownership Information https://fincen.gov/boi
- Financial Crimes Network | BOI E-Filing https://boiefiling.fincen.gov/
- Financial Crimes Network | BOIR Fact Sheet https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet
- United States Congress | BOIR – H.R. 2513 https://www.congress.gov/bill/118th-congress/house-bill/2513
- United States Congress | National Defense Authorization Act - H.R. 2670 https://www.congress.gov/bill/118th-congress/house-bill/2670
- United States Department of the Treasury | BOIR Update https://home.treasury.gov/news/press-releases/jy2530
The governing law for the BIOR is the Corporate Transparency Act (CTA) of 2021, introduced by House Bill 2513 of the United States Congress, which requires certain businesses to file BOIRs with FINCEN of the United States Department of Treasury. This CTA was enacted by the United States Congress on January 1, 2021, as part of the National Defense Authorization Act. The mission of the CTA in BOI reporting is clear with the following objectives: - Increase transparency in business ownership - Require businesses to disclose important details about ownership - Preventing money laundering, tax fraud, financing terrorism
The effective date of BOIR commenced on January 1, 2024, and is the official date of which FINCEN started accepting BOI filing on their website. Business owners who are directly or indirectly in control over a business and business owners who control at least 25% of a business are required to file a BOIR through FINCEN. There are certain limited conditions where some businesses are exempted through CTA exemptions from filing a BOIR. I truly recommend seeking legitimate certified legal advice before assuming that your business meets those exemption guidelines. The penalties of non-compliance or failure to file in a timely manner can result in a $500-per-day fine, up to $10,000 in total.
As this legal requirement is a newly introduced rule, the dates of compliance have been shifting due to the national filing of certain courts of appeals. It is recommended that affected businesses still voluntarily file BOI reports with FINCEN. You should seek legal advice before finalizing this decision.
Effectively complying with BOIR standards can immensely benefit business owners in establishing a transparent level of trust with the United States Government and its identified responsibilities, potential business partners and investors, and more importantly the American and foreign consumers of the products and services they provide. Mature business owners must understand that it is important to follow and understand the intricacies of issuing export licenses, loan approvals, grants, government contracts and many more financial understandings of fair transparent business practices.
BOI efiling: Step – by – Step Instructions (Simplified - Internet Only)
Complete Filing Instructions and Methods | FINCEN | Click Here
1. Collect all necessary documents related to your business and its owners - State issued non-expired driver’s licenses, state identification, or United States Passport - EIN (Employer Identification Number) or Tax Identification Note: Documents and Identification must be clear and readable. 2. Go to boiefiling.fincen.gov on a web browser.3. Select the Prepare & Submit BOIR link/icon. (Web)4. Input and complete all required information in the four tabs: - Home - Reporting Company - Company Applicant(s) - Beneficial Owner(s)5. After all required information has been entered you will see the Ready To File button. 6. Click the Submit BOIR button. 7. Read the WARNING! Prompt. Click I Agree.8. Wait for submission to complete processing.9. Verify Status.10. Print and save documents for your references.
BOI | Frequently Asked Questions | FINCEN | Click Here
Important related readings can be found on the following websites:- Financial Crimes Network | Beneficial Ownership Information https://fincen.gov/boi
- Financial Crimes Network | BOI E-Filing https://boiefiling.fincen.gov/
- Financial Crimes Network | BOIR Fact Sheet https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet
- United States Congress | BOIR – H.R. 2513 https://www.congress.gov/bill/118th-congress/house-bill/2513
- United States Congress | National Defense Authorization Act - H.R. 2670 https://www.congress.gov/bill/118th-congress/house-bill/2670
- United States Department of the Treasury | BOIR Update https://home.treasury.gov/news/press-releases/jy2530
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