Beneficial Owner Information Reporting – BOI

The Corporate Transparency Act added a requirement that certain types of entities must report information about their beneficial owners to the Treasury Department’s Financial Crimes Enforcement Network, commonly known as FinCen.

The new rule is effective January 1, 2024. Entities formed or created and registered with their Secretary of State on 1/1/2024 or later will have 90 days in 2024 to comply with the reporting requirements. If created 1/1/25 or later that drops to 30 days.

Entities formed and registered with their Secretary of State before January 1, 2024, will have until January 1, 2025, to report.

This reporting is not on an annual basis. You are only required to report again if there are updates or changes for beneficial owners including address changes. Any of these changes or updates to beneficial owners must be reported within 30 days of the change.

The types of entities required to report are Foreign or Domestic: C Corporations, S Corporations, Limited Liability Company (LLC), multi-member (MMLLC) or single member (SMLLC), Limited Liability Partnerships (LLP), and Limited Liability Limited Partnerships (LLLP).

The most important piece of information to know is if you create a new entity from 1/1/2024 forward you only have 90 days in 2024 to report to FinCen. That is set to drop to 30 days for any entity created on 1/1/25 or later.

To read more in detail, please visit www.fincen.gov/boi.