BOI Service

On January 1, 2024, a new law went into effect requiring the reporting of beneficial ownership (BOI) information. This will require reporting of beneficial owners.

In 2021, Congress passed the Corporate Transparency Act (CTA), 31 U.S.C. 5336. This applies to both existing and newly formed entities.

Which companies must report?

➢ U.S. reporting companies: Corporations, limited liability companies (LLCs), and any other entity registered in any U.S. state.
➢ Foreign companies: Entities formed within and under the laws of a foreign country that are also registered to do business in the United States.

Penalties for non-compliance: Willful non-compliance will result in a civil penalty of up to $500 per day, for each day after the entity’s filing deadline, and imprisonment for up to two years.

When do you need to report?

➢ Businesses registered before January 1, 2024: Must file by January 1, 2025
➢ Businesses registered on or after January 1, 2024: Must file within 90 days of incorporation

Updates:
If there is a change to any of the information reported above, an updated report must be filed no later than 30 days after the date of the change.

Corrections:
If a BOI Report was filed with inaccurate information, a corrected report must be filed no later than 30 days after the date your business becomes aware of the inaccuracy.

Who has access to the BOI report?

➢ BOI information is not publicly searchable.

➢ Federal, state, local, and tribal officials who apply through a U.S. federal government agency may obtain BOI reports for authorized activities. ➢ Financial institution regulators will have access to BOI reports when assessing a financial institution’s compliance with DDC requirements.

➢ Financial institutions may request and receive BOIs, however, only with the consent of the Reporting Company, and these requests must be specific to an individual Reporting Company; they may not request open inquiries.