With BOIR Easy Filing, you’ll be notified when it’s time to file your report based on your business and your formation date. We’ll request the information needed to file, and we’ll create an accurate report that includes the identifying information about the individuals who own or control your business, or beneficial owners, satisfying the federal reporting requirement.

Then, we’ll file the report for you before your deadline with the Financial Crimes Enforcement Network (FinCEN). You'll receive confirmation that your report was submitted, so you can rest easy knowing you've satisfied the compliance requirement.

Your deadline varies depending on your date of formation, which we can help you determine. We can also help you stay on top of the process with notifications leading up to your filing deadline.

Generally, existing companies, or business entities formed before Jan. 1, 2024, will have until Jan. 1, 2025 to file. Newly created business entities formed on or after Jan. 1, 2024 will have 90 calendar days after the date they receive actual or public notice that their formation is official. If any of the information on the report changes, the entity will have 30 days to submit a new report.

Taking care of this requirement will help you avoid criminal and civil penalties for failing to comply, including imprisonment for up to two years, a fine of up to $10,000, and/or a fine of up to $500 per day.

A beneficial owner is an individual who directly or indirectly: (1) owns or controls at least 25% of your company’s ownership interests, or (2) exercises substantial control over your business.

Examples of beneficial ownership and beneficial owners with substantial control include:

• An important decision-maker for the reporting company
• A senior officer (president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any other officer with a similar function)
• An individual with the authority to appoint or remove officers or directors (or similar body) of the company

Additionally, if you officially formed your business on or after Jan. 1, 2024, you must submit information about the individuals who formed the business (known as "company applicants"), even if they don't qualify as a beneficial owner.

Corporations and limited liability companies (LLC) who qualify as reporting companies will be required to file a BOIR. This means reporting identifying information about the individuals who own or control a business with the U.S. government. Failure to comply could mean serious civil and criminal penalties.

This new requirement applies to most business entities, known as reporting companies, unless an exception applies.

This rule, under the Corporate Transparency Act, mandates the identification of individuals who benefit from a legal entity.

The goal of this legislation is to provide transparency around business ownership structures. It helps the federal government identify on financial crimes and fraud, such as money laundering, corruption, human trafficking, drug trafficking, tax fraud, fraud against employees, customers, and other businesses.

The Corporate Transparency Act is legislation that changes the reporting requirements for beneficial ownership information of business owners operating in the United States. It requires businesses to identify and document any person who holds a 25% or greater ownership interest or exercises substantial control over the company.

Under the new rule, most reporting companies must file information on each beneficial owner with the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). FinCEN has developed a database that holds information about each beneficial owner documented by a reporting company.

A beneficial owner is required to provide their legal name, date of birth, address, phone number and an image of an acceptable identification document, such as a passport or driver's license, along with the issuing jurisdiction and the document's ID number.

FinCEN lists 23 types of exempt business entities that do not qualify as reporting companies under the reporting requirement.

• Securities reporting issuer
• Governmental authority
• Bank
• Credit union
• Depository institution holding company
• Money services business
• Broker or dealer in securities
• Securities exchange or clearing agency
• Other Exchange Act registered entity
• Investment company or investment adviser
• Venture capital fund adviser
• Insurance company
• State-licensed insurance producer
• Commodity Exchange Act registered entity
• Accounting firm
• Public utility
• Financial market utility
• Pooled investment vehicle
• Tax-exempt entities
• Entity assisting a tax-exempt entity
• Large operating company
• Subsidiary of certain exempt entities
• Inactive entity

Companies qualify as tax-exempt entities if they meet any of the following criteria:

• The IRS considers them exempt entities under section 501(c) of the Internal Revenue Code (this will include many entities with nonprofit organization status).
• They lost tax-exempt status under the code less than 180 days prior.
• They are political organizations as defined under section 527(a) of the code.
• They are trusts as defined under section 4947(a) of the code.

The agency defines a large operating company as meeting all of the following criteria:

• It is otherwise subject to a federal regulatory regime.
• It has over 20 people with full-time employment status in the U.S.
• It has more than $5 million in gross receipts or sales on a prior year's tax return filed with the IRS, excluding foreign receipts.
• It has a physical operating presence in the U.S.
• It is owned by an entity already exempt under the Corporate Transparency Act.
• It is otherwise designated as exempt by the Secretary of the Treasury and the U.S. Attorney General.

Reporting companies must be an active business. Inactive entities are not required to report. FinCEN defines an inactive entity as meeting all of the following criteria:

• It was created before Jan. 1, 2020.
• It is not engaged in active business.
• It is not owned by a foreign person, resident, domestic partnership, corporation, or other estate or trust.
• It has not sent or received over $1,000 while transacting business in the last year.
• It has no assets, including ownership of other companies, in the U.S. or elsewhere.

The Act exempts certain people from the beneficial owner definition, including:

• Minors
• Individuals acting as nominees, intermediaries, custodians, or agents on behalf of someone else
• Employees who are not senior officers and whose only interest or control is derived solely from their employment status
• Individuals whose only interest in a reporting company is derived solely from the right of inheritance
• Contingent trust beneficiaries
• Creditors whose only interest is to recover business debts

Members, or owners, of a limited liability company (LLC) are likely designated beneficial owners under the beneficial owner definition of the rule. This qualifies these LLC's as reporting companies that need to file the new report with the federal agency and provide basic contact information about the company and its owners.

This requirement applies to single-member and multi-member LLC's, all of which are considered reporting companies, and therefore also would need to identify beneficial ownership information in the BOIR.

Any changes to the owners or controlling members of a business, or their identifying information, require updated beneficial ownership information reporting. For example, an updated BOIR is required when a controlling member is a minor and reaches an age of majority. Another example is if a company becomes tax exempt.

Additionally, an updated BOIR is also required if initially reported information is incorrect or if entities make certain amendments. Businesses have 30 days from the date of the change or amendment to file an updated BOIR.

Our goal is to make your filing easy to comply and easy to maintain. People with more than one business will have a single portal to manage all businesses.

Navigating the new law can be confusing and distracting for small business owners who are otherwise focused on running and growing their business. Failure to comply can result in serious criminal and civil penalties, which include imprisonment for up to two years, a fine of up to $10,000, and/or a fine of up to $500 per day.

A service like the one provided by BOIR Easy Filing makes it easier for customers to meet this requirement as soon as possible and stay in compliance with federal law.

Based on your information, a custom report that will be created that satisfies the beneficial ownership information reporting requirement. It will be filed directly with FinCEN for you. Once your file has been submitted with FinCEN, we will provide you with confirmation that it's been successfully submitted.