BOI Information

The Corporate Transparency Act (CTA) is a federal law that mandates certain entities, including many small businesses, to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This requirement allows FinCEN to share the information with law enforcement and financial institutions to combat money laundering and other illicit activities involving shell companies. Beneficial ownership information (BOI) collected by FinCEN is used for specific purposes, such as preventing financial crimes.

In addition to the CTA, financial institutions have a separate regulatory requirement to collect beneficial ownership information (BOI) from customers opening accounts as part of federal customer due diligence. This is primarily aimed at ensuring financial institutions know their customers and can prevent illicit activities. While both FinCEN and financial institutions collect beneficial ownership information, they do so for different reasons and may collect different types of information. For instance, financial institutions require social security numbers, which are not needed for FinCEN reports. Entities may need to provide beneficial ownership information to both FinCEN and financial institutions, depending on their obligations.

All of our beneficial ownership information (BOI) plans come with complimentary annual compliance support, including routine reminders to ensure that your business stays on track with ongoing compliance requirements.

What is FinCEN BOI Reporting?

FinCEN BOI (Beneficial Ownership Information) reporting is a requirement under the Corporate Transparency Act (CTA), which mandates that certain entities, known as “reporting companies,” submit information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This includes details such as the beneficial owner’s name, date of birth, address, and identifying document information. The purpose of this reporting is to combat money laundering, terrorism financing, and other illicit financial activities by maintaining a centralized database accessible to law enforcement and authorized financial institutions. Reporting companies, which include corporations, limited liability companies (LLCs), and other entities formed or registered in the U.S., must file this information electronically through FinCEN’s system.

Who is Affected?

The Corporate Transparency Act (CTA) affects a wide range of entities, primarily those classified as “reporting companies.” These include corporations, limited liability companies (LLCs), and other entities created or registered to do business in the U.S. by filing with a secretary of state or similar office. S-Corporations, which are pass-through entities for tax purposes, are also subject to the CTA if they meet the criteria for a reporting company and do not qualify for any exemptions. However, Limited Liability Partnerships (LLPs) are not considered reporting companies under the CTA because they are not created by a secretary of state filing. Domestic and foreign companies that meet the reporting criteria are impacted, while certain entities, such as publicly traded companies and many nonprofits, are exempt. Additionally, trusts may be affected if they are considered reporting companies or if they own or control reporting companies, requiring them to disclose information about their beneficial owners.

Can We File your FinCEN Report?

Yes! At Davis & Hessel Accounting, we can assist you in filing your FinCEN report quickly and efficiently. Our experienced team is well-versed in the requirements of the Corporate Transparency Act and can guide you through the process, ensuring that all necessary information is accurately collected and submitted to FinCEN. By leveraging our expertise, you can avoid potential delays and penalties associated with non-compliance, allowing you to focus on running your business while we handle the complexities of beneficial ownership reporting.

What are the due dates?

The due dates for filing beneficial ownership information (BOI) reports with FinCEN under the Corporate Transparency Act (CTA) have been updated as follows:

March 21, 2025: This is the new deadline for most reporting companies to file their initial, updated, or corrected BOI reports. This deadline applies to companies that were previously required to report by an earlier date but were affected by injunctions or other delays.
Later Deadlines for Some Companies: Reporting companies that qualified for extensions, such as those receiving disaster relief extensions, must adhere to their extended deadlines. For example, if a company’s reporting deadline was extended to April 2025, it should follow that later deadline.
New Entities: Newly formed non-exempt reporting companies must file their initial BOI reports within 30 days of their formation date. For companies created in 2024, the deadline was 90 days after receiving notice of effective registration, and for those created on or after January 1, 2025, the deadline is 30 days.
Updates to Prior Reports: Updates to previously filed reports are due within 30 days after the change occurs.

Why Pay to File When It’s Free Online?

While it is true that you can file beneficial ownership information (BOI) reports directly with FinCEN online, there are several reasons why it may be beneficial to have Davis & Hessel Accounting handle the process for you.

Firstly, navigating the complexities of the Corporate Transparency Act (CTA) and ensuring compliance with all requirements can be challenging, especially for those without extensive experience in regulatory reporting. Our team is well-versed in the intricacies of BOI reporting, ensuring that all necessary information is accurately collected and submitted, thereby reducing the risk of errors or omissions that could lead to penalties.

Secondly, by outsourcing this task to us, you can focus on running your business without diverting valuable time and resources to compliance tasks. Our expertise allows for efficient and timely filing, ensuring that you meet all deadlines and avoid potential delays or fines.

Lastly, while the initial filing might be free, any mistakes or subsequent corrections can be costly and time-consuming. Our services include not only the initial filing but also ongoing compliance support, providing peace of mind and protection against future compliance issues. This comprehensive approach often proves more cost-effective in the long run than attempting to manage it internally.