The Beneficial Ownership Information (BOI) Report is a requirement under the Corporate Transparency Act. It mandates that many businesses in the United States report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. 1

 

Here's a breakdown:

• Who needs to report?

  • Most corporations, limited liability companies (LLCs), and other types of business entities.

  • There are some exceptions, such as publicly traded companies and certain non-profit organizations.

• What information needs to be reported?

  • The names, addresses, and dates of birth of the company's beneficial owners.

    • A "beneficial owner" is defined as any individual who directly or indirectly owns 25% or more of the company's ownership interests.

• Why is this important?

  • Combating money laundering and terrorism financing: The goal is to increase transparency and make it harder for criminals to use shell companies for illicit activities.

  • Improving law enforcement: The information collected can assist law enforcement agencies in investigations related to money laundering, terrorism financing, and other financial crimes.

Key Points:

• Deadline: The deadline for most companies to file their initial BOI reports is January 13, 2025.

• Filing Process: Companies are required to file their reports electronically through FinCEN's online system.