Who Must File the Beneficial Ownership Information (BOI) Report, and When?

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In response to the evolving regulatory landscape, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) has initiated a critical move to combat illicit activities involving anonymous shell companies. The 2021 law, now in effect as of January 1, 2024, requires companies to disclose their beneficial ownership information (BOI), aiming to thwart money laundering, drug trafficking, and corruption by identifying the true owners or controllers of entities.

Who's Affected and What's Required?

This landmark change will impact millions of businesses, both large and small, across diverse sectors. The Corporate Transparency Act (CTA) mandates that small businesses and entities subject to the new rule must collect, document, and submit previously unreported BOI to FinCEN. The reporting requirement applies to a broad spectrum of domestic and foreign entities registered in the U.S.

When are the BOI reports due?

There are 3 potential due dates dependent upon the formation of your business:

1)      For entities created prior to January 1, 2024, the required BOI must be reported by January 1, 2025.

2)      For entities created on or after January 1, 2024, and before January 1, 2025, the required BOI must be reported within 90 days after receipt of actual or public notice that such entity’s creation or registration is effective, whichever is earlier.

3)      For entities created on or after January 1, 2025, the required BOI must be reported within 30 days after receipt of actual or public notice that such entity’s creation or registration is effective.

How Can Our Firm Help?

Understanding the challenges these new regulations pose, Sharp Financial is committed to assisting businesses in complying with the CTA. We recognize the additional burden these reporting requirements may impose on your operations and have tailored solutions to streamline the process. We will assist you in preparing the filing for both single and multiple-entity filers, reducing the risk associated with handling the filing independently. Additionally, we’ll maintain a secure hosting environment for the upload, storage, and updating of beneficial ownership information.

Next Steps:

We encourage our clients and owners of business entities to reach out to our team for personalized assistance in navigating these regulatory changes. Our expertise, coupled with tailored approaches, ensures a seamless transition towards compliance.

Frequently Asked Questions

Who must file the Beneficial Ownership Information (BOI) report, and when?

Generally, any business registered with a Secretary of State (SOS) must file an initial BOI Report by:

1. Entities created prior to January 1, 2024 -> file by January 1, 2025.

2. Entities created on or after January 1, 2024 but before January 1, 2025 -> file within 90 days of SOS registration.

3. Entities created on or after January 1, 2025 -> file within 30 days of SOS registration.

What info will be required?

Reporting Company: The company filing the BOI report.

1. Full legal name, and any trade or “DBA” name

2. Complete current address, including state, tribal or foreign jurisdiction

3. IRS Taxpayer Identification Number (TIN)

Beneficial Owner: Individual who owns, directly or indirectly, 25% or more ownership interest; or an individual with substantial control over operations (C-level executives, president, VPs, directors, etc.).

1. Full legal name

2. Date of Birth

3. Complete current address, including state, tribal or foreign jurisdiction

4. Unique identifying number: passport, driver’s license, or state ID number

5. Photocopy, or scanned image, of ID document

Company Applicant: Individuals who participated in creation of reporting company – potentially includes outside counsel.

1. Same information as “Beneficial Owners”

Is this an annual filing?

No; however, updated BOI reports are required to be filed within 30 days of any change in beneficial ownership or entity type subsequent to the initial filing.

How do I file?

Businesses are required to file their BOI reports online either by downloading, filling out, and uploading the BOI form(s); or by populating the form(s) directly through the FinCEN filing tool. Both options are available here: https://boiefiling.fincen.gov/fileboir

Are there any Businesses that may qualify for BOI filing Exemption?

Yes; but we encourage that you consult with Sharp Financial to determine if your business qualifies as exempt from BOI requirements.

Connect With Us:

Don't hesitate to contact us for guidance, support, and to explore how our tailored solutions can ease the burden of beneficial ownership reporting. We are here to partner with you on this journey and safeguard your business from potential compliance challenges. Please contact your Sharp advisor, email us at info@sharpllc.com, or call 215-659-2130 to be put in touch with an advisor who can help.

In a rapidly changing regulatory landscape, Sharp Financial stands ready to be your trusted ally, providing clarity, efficiency, and expertise in the face of evolving compliance requirements.

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