At Waypoint Bank, we know that what is behind the scenes for a business matters as much as what’s happening out front. That’s why Beneficial Ownership Information (BOI) filings are important for companies in the United States. These reports, required by FinCEN, provide details about individuals or groups who have control over a company. Due to the Transparency Act created in 2021, specific companies are now required to follow regulations designed to encourage accountability and transparency.

Why does it matter? Well, in today’s world, transparency is crucial – not just for ethical business practices but also to stay compliant with regulations, prevent fraud, and safeguard national security. BOI filings help make sure companies are playing by the rules and not hiding who’s really in charge. So, let’s break down what BOI is, who’s involved, and why it’s so essential for compliance in today’s business landscape.

Who Must File a BOI Report?

Any foreign or domestic company that was created in the United States through the Secretary of State, including corporations and limited liability companies, must file a BOI report. It’s all about keeping things transparent and showing accountability!

What Information Must Be Provided in BOI Reports

A company applicant is the person who files the paperwork to create the reporting company. When filling out a BOI report, it typically asks for the individual’s full legal name, date of birth, street address and a unique ID number. The unique ID can be from a state driver’s license, an unexpired US passport, or other government issued ID card. If none of these are available, an unexpired foreign passport works too.

Who is a Beneficial Owner?

A beneficial owner is anyone who directly owns or controls an interest in a legal entity or arrangement in a company. The definition of a beneficial owner varies, but typically includes if someone owns or controls at least 25% of the ownership interests of the reporting company, has substantial influence over company decisions and agreements, and receives benefits of ownership (dividends, profits, etc.). You will need the same information for each beneficial owner as you did for the company applicant.

When To File

When filing a BOI report, the deadline depends on when a company was created:

• If a company was created before January 1, 2024, it has until January 1, 2025 to file its first BOI report.
• If a company was created on or after January 1, 2024 but before January 1, 2025, it has 90 calendar days to file.
• If a company was created on or after January 1, 2025, it has to file 30 calendar days after registration.

What Happens if You Don’t File on Time?

FinCEN may charge fees if your report is not filed on time. For each day your report is late, you could be fined up to $591. This daily penalty accumulates quickly, creating a substantial financial burden. More severe consequences include up to two years of imprisonment and a fine of up to $10,000. These penalties apply if you willfully fail to file your report, submit false information, or fail to correct/update previously reported information.

How to File

To file a BOI report for a company, file electronically at https://boiefiling.fincen.gov/. There are two methods to submit the report; fill out the web-based version of the form and submit it online or upload a completed PDF version of the report. There is no fee for filling out and submitting the report.

The Importance of BOI Filing

BOI reports play a key role in maintaining stability in the business world for several reasons. First off, they promote transparency and accountability in company ownership, building trust with stakeholders like customers, investors, and partners. They also help combat financial crime by revealing the true owners of businesses, making it harder for criminals to hide illegal activities. Staying on top of BOI reporting not only benefits your company but also helps FinCEN keep things running smoothly.

If you’re a business owner seeking financial advice, Waypoint Bank has your back. Our excellent services are designed to help your business thrive. Whether you need guidance on BOI reports or other financial matters, we’re here for you. Stop by one of our branches and see what Waypoint Bank can do for you!