BOI stands for “Beneficial Ownership Information Reporting form”.
Starting January 1, 2024, many U.S. businesses must submit a BOI report to the Financial Crimes Enforcement Network (FinCEN). This report gathers information about the company, its beneficial owners, and company applicants.
The filing of this form is a key component of the Corporate Transparency Act, a federal law aimed at strengthening defenses against money laundering and other financial crimes. By making businesses share comprehensive information, the CTA aims to create a strong system to track ownership and prevent misuse of corporate entities.
Who's Affected:
Most private businesses, including corporations, LLCs, and others, fall under BOI requirements. If your business was formed or registered on or after January 1, 2024, compliance is mandatory within 90 days of formation or registration. For businesses established before this date, the initial BOI report is due by January 1, 2025.
What Information is Needed:
Businesses must provide detailed information about the company and its beneficial owners. If your business was formed after January 1, 2024, additional details about company applicants are also required.
You will need to have on hand:
- Business name
- EIN
- Business address
- State of formation
- Company Applicant Information
- Full name of each beneficial owner
- Date of birth
- Complete current address
- Copy of passport
- Identifying document number
⚠️ Consequences of Non-Compliance:
Not filing a BOI report can result in penalties of up to $500 per day until submitted, with a maximum of $10,000. Non-compliance may lead to imprisonment for up to 2 years, underlining the seriousness of this federal requirement.
But don’t worry, we got you covered In Globalfy. For customers who have one of our new plans (Starter, Essential, Freelancer Essential, and Scale), the BOI is included, and we will take care of it after the formation process of your company is finished! For customers who don’t have a current plan in Globalfy, you can hire it separately, just get in touch with us here, and we will let you know the prices for this service.
Important Update: As of December 5, 2024, the BOI report is no longer mandatory for businesses, and no penalties will be imposed on companies that do not complete this process until further notice.
However, at Globalfy, we will continue to prepare this report for clients enrolled in our Starter, Essential, Freelancer Essential, and SCALE plans as a precautionary measure in case the requirement is reinstated in the future.
If you still have any questions or need further assistance regarding this topic, we are available to assist you. Simply click here to submit your support request and our team will assist you. What is the BOI Report?