Begin Your Required Beneficial Ownership Information Report Today
Under the Corporate Transparency Act, businesses are now mandated by federal law to file a Beneficial Ownership Information Report. Failure to comply may result in criminal and civil penalties. We offer assistance to ensure your filing is compliant and hassle-free.
Achieve Compliance
Simplify Your Process
File with Certitude
Why Seek Assistance with the Beneficial Ownership Information Report?
Navigating a new law with potential civil and criminal penalties, including fines and imprisonment, can be overwhelming. Let us alleviate your concerns and mitigate the risks associated with compliance by providing straightforward and precise report filing services.
Avoid Severe Penalties
Failure to comply with FinCEN’s requirements may result in civil penalties of up to $5,000 for each violation. Each day a violation continues, it constitutes a separate violation. Using FileGuru helps avoid penalties while keeping you compliant.
Avoid Imprisonment
Steer clear of criminal and civil penalties for not adhering to FinCEN regulations, which may include imprisonment for up to two years.
Safeguard Compliance
Rest assured in the compliance of your business. Using FileGuru helps keep you compliant with the Financial Crimes Enforcement Network (FinCEN), ensuring confidence and security.
Prioritize Tasks
FileGuru enables you to streamlines operations, freeing up valuable time, resources, and energy to focus on other critical areas of your business.
Unsure if you're required to File?
THREE SIMPLE STEPS: Completing the Beneficial Ownership Information Report
Ensuring accurate reporting of essential information regarding your business owners or controllers is crucial for sidestepping severe civil and criminal penalties. Let us assist you in effortlessly and precisely meeting these obligations.
Inform Us About Your Beneficial Owners
Provide answers to a brief set of questions concerning the individuals who own or control your business to ensure your report is tailored and precise.
We Handle Report Creation and Filing on Your Behalf
We’ll craft a customized report that meets the beneficial ownership information reporting mandate, and we’ll handle the filing process on your behalf.
Obtain Confirmation of Your Filed Report
Upon filing your personalized report with the Financial Crimes Enforcement Network (FinCen), we’ll furnish you with confirmation.
Select a Plan That Aligns with Your Compliance Requirements
$99
each year
1 submission or revision
1 BOI submission or revision means that you may submit one company filing, or a revision for a company filing that has already been filed with FinCen.
$179
each year
3 submissions or revisions
3 BOI package allows you to file up three (3) BOI reports, or up to three (3) revisions for any filed BOI report for a full calendar year. This option does not contemplate refunds.
Is the Beneficial Ownership Information Reporting Rule Applicable to You?
What Does the Beneficial Ownership Information Reporting Rule Entail?
The Corporate Transparency Act presents the Beneficial Ownership Information Reporting Rule, ushering in a fresh filing protocol managed by the Financial Crimes Enforcement Network (FinCEN), a division of the United States Department of the Treasury.
Mandated by the Corporate Transparency Act, the Beneficial Ownership Information Reporting Rule institutes a novel filing procedure under the oversight of the Financial Crimes Enforcement Network (FinCEN), an arm of the United States Department of the Treasury.
By facilitating the reporting of beneficial ownership information, the rule reinforces the ongoing endeavors of the U.S. government to deter corporations from concealing or profiting from actions that inflict harm on others.
Who Qualifies as a Beneficial Owner?
Under the Corporate Transparency Act, a beneficial owner is someone who, either directly or indirectly, (1) possesses or manages at least 25% of your company’s ownership stakes, or (2) wields significant control over your business. Examples of individuals with substantial control can include:
- High-ranking officers (e.g., president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any comparable executive)
- Key decision-makers within the reporting company
- Individuals empowered to appoint or dismiss specific officers or a majority of directors (or equivalent governing body) within the company
What Consequences Arise from Failing to File?
Every business is required to submit a Beneficial Ownership Information Report, outlining all individuals who have control or ownership of the business. However, a beneficial owner who knowingly disregards the reporting and filing regulations or provides false information to the Financial Crimes Enforcement Network will be personally accountable. This could lead to both criminal and civil penalties for noncompliance with the Corporate Transparency Act.
Noncompliance carries significant repercussions, including imprisonment for up to two years and/or fines of up to $10,000, alongside civil penalties of up to $500 per day.
Merely submitting the report on time does not guarantee immunity from penalties; inaccuracies in the report can still result in consequences. Ensuring accuracy in filing is paramount. We offer assistance in simplifying the reporting and filing process, ensuring adherence to the law.
What is the Deadline for the Beneficial Ownership Information Report?
Since the inception of the Beneficial Ownership Information Reporting Rule on January 1, 2024, it’s imperative to familiarize yourself with the requisite compliance procedures. The deadline is determined by your formation date, a detail we can help you ascertain. Additionally, we provide proactive notifications to keep you abreast and on track leading up to your filing deadline.
Businesses established before January 1, 2024, must file by December 31, 2024. Those established on or after January 1, 2024, have 90 days from their formation date. Any amendments to formation documents after January 1, 2024, necessitate filing within 30 days.
Meeting this requirement is crucial to evade potential criminal and civil penalties for noncompliance, such as imprisonment for up to two years, fines of up to $10,000, and daily fines reaching $500.
How Can I Obtain a Beneficial Ownership Information Report?
With our Beneficial Ownership Information Report service, you’ll receive timely reminders to file. We’ll collect essential details and create an accurate report containing identifying information about individuals who own or control your business, ensuring compliance with the beneficial ownership information reporting mandate.
Following this, we’ll promptly submit the report on your behalf to the Financial Crimes Enforcement Network (FinCEN) and provide confirmation upon successful submission. This guarantees your peace of mind, affirming that you’ve fulfilled the compliance requirement.
What Does the Beneficial Ownership Information Report Contain?
The Beneficial Ownership Information Report covers comprehensive details about the reporting company, including its full legal name, any trade or DBA names, address, federal tax ID number (or EIN), and the jurisdiction of its establishment.
Moreover, it includes the complete legal names and birthdates of the owners, their current addresses, and images of acceptable identification documents (like passports or driver’s licenses), along with details on the issuing jurisdiction and document ID number. If the individual who submitted your entity formation documents (referred to as the applicant) is not among the beneficial owners, they must also provide identical information to that of the beneficial owners.
Our service simplifies the reporting and filing process for the required information with the Financial Crimes Enforcement Network, reducing the time pressures and stress associated with deadlines and ensuring accurate report submission.
What is the Impact of the Beneficial Ownership Information Reporting Rule on LLCs?
Owners of a limited liability company (LLC) are required to submit the new report to the federal agency, furnishing basic contact information about the company and its owners, referred to as members. This obligation is applicable to both single-member and multi-member LLCs.
Who Does Not Need to File Beneficial Ownership Information Reports?
The majority of small business entities are subject to this requirement, with exemptions limited to specific categories. Exempt entities include publicly traded companies, tax-exempt nonprofit organizations, certain large operating companies, and others meeting defined criteria. The Financial Crimes Enforcement Network identifies 23 types of exempt entities ineligible as reporting companies, along with certain individuals ineligible for listing as beneficial owners under the reporting requirement.
Frequently Asked Questions
What does beneficial ownership information reporting entail?
Each business entity registered with the Secretary of State must submit one Beneficial Ownership Information Report. This report furnishes identifying details about individuals who own or control the business to the Financial Crimes Enforcement Network, ensuring compliance with legal obligations outlined in the Corporate Transparency Act.
How can I obtain a Beneficial Ownership Information Report?
FileGuru will notify you when it’s time to file your report, tailored to your business and formation date. We’ll compile an accurate report containing identifying information about the individuals who own or control your business. Following this, we’ll promptly file your report with the Financial Crimes Enforcement Network and confirm successful completion, ensuring effortless compliance and peace of mind.
How do I know if I qualify as a beneficial owner?
A beneficial owner is someone who either directly or indirectly:
- possesses or manages at least 25% of your company’s ownership interests, or
- exerts significant control over your business.
If you’re uncertain, you can always consult with an attorney from our legal network.
Can you provide an example of a beneficial owner who possesses substantial control?
Instances of beneficial ownership and individuals with substantial control encompass:
- Key decision-makers within the reporting company
- High-ranking officers (e.g., president, chief executive officer, chief financial officer, general counsel, chief operating officer, or officers with similar functions)
- Individuals empowered to appoint or dismiss officers or directors (or equivalent governing body) of the company
What does the Beneficial Ownership Information Reporting Rule entail?
The Beneficial Ownership Information Reporting Rule, established within the Corporate Transparency Act, requires the identification of individuals who derive benefits from a legal entity. This rule aims to enhance transparency and assists the federal government in combating various financial crimes and frauds, including money laundering, corruption, human trafficking, drug trafficking, tax fraud, and fraud against employees, customers, and other businesses.
What purpose does beneficial ownership serve?
Starting January 1, 2024, beneficial ownership information reporting becomes mandatory under the Corporate Transparency Act, reinforcing the continuous efforts of the U.S. government to discourage individuals or entities from concealing or profiting from actions that cause harm to others.
What details are necessary for beneficial ownership?
A beneficial owner must furnish their full legal name, date of birth, address, percentage of ownership, and a photograph of an acceptable identification document, such as a passport or driver’s license. Additionally, details regarding the issuing jurisdiction and the document’s ID number are required.
What categories of companies are ineligible as reporting companies and might be exempt from Beneficial Ownership Information Reporting?
The Financial Crimes Enforcement Network provides a list of 23 categories of exempt business entities that do not meet the criteria as reporting companies under the reporting requirement:
- Securities reporting issuer
- Governmental authority
- Bank
- Credit union
- Depository institution holding company
- Money services business
- Broker or dealer in securities
- Securities exchange or clearing agency
- Other Exchange Act registered entity
- Investment company or investment adviser
- Venture capital fund adviser
- Insurance company
- State-licensed insurance producer
- Commodity Exchange Act registered entity
- Accounting firm
- Public utility
- Financial market utility
- Pooled investment vehicle
- Tax-exempt entities
- Entity assisting a tax-exempt entity
- Large operating company
- Subsidiary of certain exempt entities
- Inactive entity
Which types of companies are considered tax-exempt and may be exempt from Beneficial Ownership Information Reporting?
Businesses are deemed tax-exempt entities if they meet one of the following conditions:
- They are recognized as exempt entities by the IRS under section 501(c) of the Internal Revenue Code, encompassing many entities with nonprofit organization status.
- They have lost tax-exempt status under the code within the last 180 days.
- They qualify as political organizations as outlined in section 527(a) of the code.
- They meet the definition of trusts according to section 4947(a) of the code.
Which companies are categorized as large operating companies and could potentially be exempt from Beneficial Ownership Information Reporting?
The agency characterizes a large operating company by fulfilling the following criteria:
- Being subject to a federal regulatory regime.
- Employing over 20 individuals in full-time positions within the U.S.
- Generating more than $5 million in gross receipts or sales on the previous year’s tax return filed with the IRS, excluding foreign receipts.
- Maintaining a physical operating presence in the U.S.
- Being owned by an entity already exempt under the Corporate Transparency Act.
- Otherwise being designated as exempt by the Secretary of the Treasury and the U.S. Attorney General.
Which types of companies are considered inactive entities and might be exempt from Beneficial Ownership Information Reporting?
Active businesses are obligated to report, whereas inactive entities are exempt. The Financial Crimes Enforcement Network outlines an inactive entity as fulfilling the following conditions:
- Established prior to January 1, 2020.
- Not actively engaged in business operations.
- Not owned by a foreign individual, resident, domestic partnership, corporation, or other estate or trust.
- Not involved in transactions exceeding $1,000 in the past year.
- Lacks assets, including ownership of other companies, in the U.S. or abroad.
Which individuals are exempt from being listed as beneficial owners under the Corporate Transparency Act?
Certain individuals are exempt from the definition of beneficial owner as per the Corporate Transparency Act, including:
- Minors
- Individuals serving as nominees, intermediaries, custodians, or agents on behalf of others
- Non-senior officer employees whose interest or control solely stems from their employment
- Individuals whose interest in a reporting company is solely based on inheritance rights
- Contingent trust beneficiaries
- Creditors whose interest solely involves business debt recovery
Who is required to submit a Beneficial Ownership Information Report?
Corporations and limited liability companies (LLCs) must furnish identifying details about individuals who own or control their business to the Financial Crimes Enforcement Network, in accordance with the Corporate Transparency Act. This obligation extends to most business entities unless exempted.
What does the Corporate Transparency Act entail?
The Corporate Transparency Act is a legislative measure altering the reporting obligations concerning beneficial ownership information for business proprietors within the United States. It mandates businesses to identify and record any individual holding a 25% or greater ownership interest or wielding significant control over the company.
In compliance with the Corporate Transparency Act, the majority of reporting companies are required to submit details on each beneficial owner to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN has established a database housing information on every beneficial owner documented by a reporting company.
What alterations are anticipated for LLCs in 2024?
Members, or owners, of a limited liability company (LLC) are typically classified as beneficial owners as per the definition outlined in the rule, necessitating the submission of the new report to the federal agency. They must furnish fundamental contact details regarding the company and its owners.
This obligation is applicable to both single-member and multi-member LLCs, where all members may be deemed beneficial owners. Hence, they must be identified in the Beneficial Ownership Information Report and filing, along with their pertinent identifying information.
What happens if there are alterations to my business subsequent to filing a Beneficial Ownership Information Report?
If there are modifications to the owners or controlling members of a business, or alterations to their identifying details, updated reporting of beneficial ownership information is necessary. For instance, an updated Beneficial Ownership Information Report is mandated when a controlling member transitions from a minor to reaching the age of majority, or if a company obtains tax-exempt status. Similarly, an updated report is required in cases where initially reported information is found to be inaccurate or if entities amend their formation documents. Businesses are granted a 30-day window from the date of the change or amendment to file an updated Beneficial Ownership Information Report.
What does FileGuru's Compliance Filings package include?
Ensuring your business remains compliant is vital for preserving its good standing and averting penalties, fines, and legal repercussions. With our Compliance Filings package, you can effortlessly meet the newly introduced beneficial ownership information reporting mandate along with other compliance filing requirements:
- Annual Reports: Seamlessly navigate through the setup and completion of official filings necessary to keep your business information—such as its name, address, managers, and other particulars—up to date with the state. Filing prerequisites vary by state.
- Personalized Alerts: Receive tailored alerts informing you of your specific filing obligations and deadlines, streamlining the process of business compliance.
- Amendments: Submit up to two official changes concerning your business annually to the Secretary of State, which may include alterations to the business name, address, or ownership structure.
- Updated Beneficial Ownership Information Reports: Submit additional filings to reflect any changes to the identifying information of your business.
What does FileGuru's Compliance Filings plus Licenses & Permits package include?
Ensuring your business remains compliant is crucial for upholding its good standing and evading potential penalties, fines, and legal entanglements. With Compliance Filings plus Licenses & Permits, you not only fulfill the new beneficial ownership information reporting mandate but also address all additional compliance filing requirements offered in our Compliance Filings package. Additionally, we assist you in obtaining the necessary business licenses and permits:
- Tailored overview outlining the federal, state, and local licenses and permits required for your business
- Direct access to all requisite applications, streamlining and expediting the application process
- Capability to upload, view, and share business licenses directly from your FileGuru account
- Notifications regarding upcoming expiration dates and any new license prerequisites
What are the benefits of utilizing a service to submit the Beneficial Ownership Information Report for your business?
The Corporate Transparency Act stands as a significant legislation impacting small business owners, with its latest requirement, the Beneficial Ownership Information Reporting Rule, taking effect on January 1, 2024. This rule mandates that most limited liability companies and corporations file a report detailing their beneficial owners.
For small business owners already focused on managing and expanding their ventures, grappling with this new law can prove to be both confusing and burdensome. FileGuru’s service aims to alleviate this burden by offering customers a streamlined solution to promptly address this requirement and ensure compliance with the law, thus mitigating the risk of facing criminal and civil penalties, which may include imprisonment, fines, and daily penalties.
Through FileGuru, customers can navigate the compliance process seamlessly in three simple steps, ultimately minimizing their exposure to risk while optimizing efficiency. It begins with customers answering straightforward questions regarding the individuals who own or control their business, ensuring the report is tailored and precise. Subsequently, a customized report satisfying the beneficial ownership information reporting mandate is meticulously crafted and filed. Upon filing the personalized report with the Financial Crimes Enforcement Network, FileGuru promptly delivers confirmation of completion to the customer.