Beneficial Ownership Information – What Does This Mean for My Business? - 1st Source

In 2021, Congress passed the Corporate Transparency Act, requiring many businesses to file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department.

What Does This Mean for Your Business?

If your business is required to report, deadlines for submitting BOI reports will vary based on when your company was created and registered:

  • Before January 1, 2024: BOI reporting is due by January 1, 2025.
  • Between January 1, 2024, and December 31, 2024: You have 90 calendar days from when your business receives notice of its creation or registration being active, whichever is earlier, to submit your BOI report.

Where to File Your BOI Report

FinCEN has the paperwork necessary for filing on the BOI website, https://www.fincen.gov/boi, where you can:

  • Submit your BOI report electronically.
  • Access helpful resources, including an introductory video, reference guides, and FAQs.

Quick FAQs: What You Need to Know

  1. How do I report my company’s beneficial ownership information?
    1. You’ll submit your company’s information securely through FinCEN’s Filing website https://boiefiling.fincen.gov/. The process can be completed electronically.
  2. Which companies need to report?
    1. Domestic reporting companies: These include corporations, LLCs, and any other entities created by filing a document with a secretary of state or similar office in the U.S.
    2. Foreign reporting companies: Entities formed under the law of a foreign country that have registered to do business in the U.S. by filing with a secretary of state or similar office.
  3. Are there any exemptions?
    1. Yes, there are 23 types of exempt entities, including publicly traded companies, certain nonprofits, and specific large operating companies. You can find more details on the FinCen FAQ’s page https://www.fincen.gov/boi-faqs .
  4. Is there a fee to submit a BOI report?
    1. FinCEN does not charge a fee for submitting your BOI report.

Need Help with Filing?

Businesses can choose to file their BOI report individually or work with a third party, such as an attorney. If you decide to engage a third party, be sure to conduct proper research to avoid any potential fraud.

Important Note:

1st Source Bank cannot assist with the submission of BOI reports for legal reasons. However, we’re here to guide you with general information and ensure you understand the requirements.

Don’t Wait – Get Prepared!

The January 1, 2025 deadline is approaching quickly. Be proactive in determining if your business needs to file a BOI report to avoid any delays in the new year. For more information, visit the Official FinCen BOI website https://www.fincen.gov/boi

(Information courtesy of FinCen  https://www.fincen.gov/boi)