Breaking Down FinCEN’s BOI Report: Specific Information Needed by Reporting Companies

The implementation of Beneficial Ownership Information (BOI) reporting requirements marks a significant shift in how businesses disclose ownership information. This will continue to impact businesses ranging in scope, location, and industry.

As a business owner, it is crucial that you stay informed about BOI reporting and what it requires from you. This includes eligibility for reporting, deadlines associated with reporting, and what information is required. 

Let’s explore all of these aspects of the BOI reporting process. 

Who is required to submit a BOI Report?

Typically, companies that are required to report beneficial ownership information are called “Reporting Companies.” Per the FinCEN guidelines, reporting companies should submit BOI reports. Reporting companies can be classified into two categories:

• Domestic reporting companies are entities registered in the United States by filing with a secretary of state or any equivalent office. 
• Foreign reporting companies are entities formed under the law of a foreign country that have registered to do business by filing with a secretary of state or any equivalent office.

If your business fits into either category, it likely must report Beneficial Ownership Information. 

What information is included in the BOI Report?

A Beneficial Ownership Information (BOI) report consists of four essential elements, which are as follows: 

• The type of BOI filing
• The reporting company 
• The company applicant 
• The beneficial owner 

Let’s see the breakdown of each section:

1. The type of BOI filing: To start the BOI filing process, the reporting company needs to determine the type of BOI report they need to file. There are four types of BOI filings available, and they may be filed at different times as the business undergoes changes to its ownership structure. 

• Initial report: This filing type should be selected if a reporting company is filing a BOI report for the first time.
• Correct prior report: If a reporting company needs to update incorrect information on a previously filed BOIR, they choose this filing type.
•  Update prior report: If the (correct) information reported on the previous BOIR has changed, a reporting company can choose this filing type. For example, an updated BOI Report should be filed if a new beneficial owner is added.
•  Newly exempt entity: If the reporting company filed an initial BOIR and is now exempt from BOI reporting requirements, it should submit a BOI report indicating that it is a “newly exempt entity”. In this case, the filer only needs to fill out fields related to the reporting company information associated with the report. No other fields in the BOIR need to be completed.

The Reporting Company: When a reporting company files the BOI report for the first time with FinCEN, then the following information is provided in the Initial BOI report:

• Full legal name
• Any and all trade names or “doing business as” (DBA) names
• A complete current U.S. street address
• The state, tribal, or foreign jurisdiction of formation.
• An Internal Revenue Service (IRS) Taxpayer Identification Number (TIN),   including an Employer Identification Number (EIN)
• The state or tribal jurisdiction of first registration, in the case of a foreign reporting company

The Company Applicant: Reporting companies established on or after January 1, 2024, must meet the BOI reporting requirements. This applies to individuals who apply directly to create or register the entity. They are referred to as “company applicants.” The reporting company can have only two company applicants.

A reporting company will need to provide specific details for every individual who is a company applicant:

• The individual’s name
• Date of birth
• Address 
•  Unique identifying number and issuing jurisdiction from, and image of, one of the following non-expired documents: 

• U.S. passport
• State driver’s license
•  Identification document issued by a state, local government, or tribe, 
•  Foreign passport if none of the above are available or applicable.

Note: If the company applicant is employed in corporate formation, such as an attorney or corporate formation agent, the reporting company must report the applicant’s business address. Otherwise, the reporting company must report the company applicant’s residential address.

The Beneficial Owner: A beneficial owner is an individual who exercises substantial control over an entity or owns or controls a significant percentage of that entity (usually 25% or more). A reporting company can have multiple beneficial owners. All reporting companies must provide the following required information on their beneficial owners to comply with beneficial ownership reporting requirements:

• Full legal name
• Date of birth
• Current street address
• ID number, jurisdiction, and an image of one of the following non-expired documents:

• U.S. passport
• State driver’s license
• Identification document issued by a state, local government, or tribe
• Foreign passport, if none of the above are available or applicable

Note: If an individual provides their FinCEN identifier to a reporting company, the company can use it in place of the individual’s information requirements.

What is a FinCEN identifier?

A “FinCEN identifier” is a unique number that FinCEN issues to individuals or reporting companies who provide specific information to FinCEN.

An individual or a reporting company submitting a report does not need to obtain a FinCEN identifier. Additionally, each individual or company can only have one FinCEN identifier. Your company can include FinCEN identifiers in its BOI report instead of providing certain required information about beneficial owners or company applicants. 

 When is the BOI Reporting Deadline?

 The deadline to file the BOI Report depends on when your company was registered:

• Companies registered before January 1, 2024, must submit the BOI report by January 1, 2025.
• Companies registered on or after January 1, 2024, must submit the BOI report within 90 calendar days of registration.
• Companies registered on or after January 1, 2025, will have 30 days post-registration to file initial BOI reports with FinCEN.
• Companies must file the updated or corrected BOI report within 30 days of any changes or updates to their company information or beneficial owners.

Simplified BOI Reporting for Your Company with TaxBandits

File your BOI report easily and efficiently with TaxBandits, with features designed to simplify the filing process. By streamlining procedures and simplifying the compliance process, TaxBandits allows you to focus on what matters most: your business’s success.

It is important to meet reporting obligations to maintain transparency and integrity of company operations and avoid penalties.

Begin your BOI filing today with TaxBandits!

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