As of January 1, 2024, many companies in the United States must report information about their beneficial owners, i.e., the individuals who ultimately own or control the company. Reporting is done through the Financial Crimes Enforcement Network (FinCEN), a U.S. Department of the Treasury Bureau. This ownership requirement is often called “Beneficial Ownership Information” or “BOI.”
Are you wondering if your company is a “reporting company”?
There are two categories of reporting companies that must report their company applicants to FinCEN:
- Domestic reporting company – created in the U.S. on or after January 1, 2024
- Foreign reporting company – first registered to do business in the U.S. on or after January 1, 2024
If your business functions as a corporation, an LLC, or was formed by submitting documentation to a Secretary of State Office (or equivalent authority) as mandated by state law, it’s highly probable you qualify as a reporting company and should therefore initiate the registration process.
If you are uncertain whether or not you are a reporting company, you can find a comprehensive list of 23 reporting company categories exempt from reporting requirements here.
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report. It’s important to note this deadline and ensure timely compliance to avoid potential penalties or legal issues.
Any reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar-day deadline runs from when the company receives actual notice that its creation or registration is effective or after a Secretary of State Office (or similar office) first provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from the date of actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
Learn more about BOI Reporting on our website here.
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