Do you own 25% or more of a corporation or LLC?

If so, you are required to file a Beneficial Ownership Information (BOI) form with the Financial Crimes Enforcement Network (FinCEN) by December 31, 2024. Failure to comply could result in fines of $250 per day. In 2021, Congress enacted the Corporate Transparency Act to combat illicit financing. This law requires many companies doing business in the United States to report information about their ultimate owners or controllers (referred to as “Beneficial Owners”). In most cases, the Beneficial Owners are the same as the company’s actual owners. You can file the report online at https://fincen.gov/. Click the “File your report now” button on the right side of the page to begin.

 

Who Must File?

Almost all entities are required to file the report. While some exemptions exist, exempt companies must still complete the report and claim their exemption. 

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What Information Is Needed?
For all individuals who own 25% or more of the entity, you will need:

Full name, Residential address, Date of birth, Driver’s license or passport number, A copy of the driver’s license or passport to upload during the filing process. 

For the entity itself, you will need:  EIN (Tax ID number), Business address. 

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Special Situations:
If one entity owns another (e.g., XYZ Holdings, LLC owns XYZ Properties, LLC), the individuals who own XYZ Holdings are considered the Beneficial Owners of XYZ Properties.

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Trusts:
Trusts are not required to file BOI reports. However, if an LLC or corporate stock is held in a Trust, the Beneficial Owners are the individual Trustors of the Trust, not the Trust itself.

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For More Information:
Visit the FAQ page, which includes details about exemptions, here: https://fincen.gov/boi.

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Important Note:
On December 4, 2024, a District Court in Texas issued an injunction preventing enforcement of the Corporate Transparency Act. As a result, the December 31, 2024, filing deadline is currently suspended. However, this could change at any time. We will provide updates as events develop.