The BOI Report is a disclosure submitted to the federal government, providing detailed information about individuals who own or control a business. The Beneficial Ownership Information Reporting Rule became effective on January 1, 2024.

Beneficial ownership refers to individuals who either own, control, or benefit from a company, even if their names are not listed in official documents. These individuals typically have significant influence over the company’s operations, decisions, and finances. This concept is essential for ensuring business transparency, combating financial crimes, and promoting accountability.

The Corporate Transparency Act (CTA) is a federal law designed to combat fraud and money laundering. It mandates certain businesses to report their beneficial ownership details to the Financial Crimes Enforcement Network (FinCEN) to promote transparency and prevent illicit activities.

Oui, noncompliance with the BOI filing requirements can lead to serious consequences. Civil penalties may reach up to $500 per day for ongoing violations, with a maximum fine of $10,000. In severe cases, individuals may also face criminal penalties, including imprisonment for up to two years.

Certain entities are exempt from filing BOI Reports, including regulated financial institutions, tax-exempt organizations, and inactive businesses that meet specific criteria. Each exemption is subject to detailed regulatory guidelines.

A BOI Report typically includes the names, addresses, dates of birth... and ownership percentages of individuals who control or own the company. Additionally, identification documents, such as a driver’s license or passport, are required to verify the information provided.

Using a professional service simplifies the process, ensuring accurate submissions. It helps identify exemptions, reduces the risk of errors, and protects businesses from costly penalties.