The Beneficial Ownership Information Report (BOIR) is a new requirement under the Corporate Transparency Act (CTA). It’s designed to increase transparency in business ownership and help combat financial crimes.
• Enforced by the Financial Crimes Enforcement Network (FinCEN)
• Required for most businesses, unless exempt under the CTA
• Businesses formed in 2024 must file within 90 days of formation
• Deadline for businesses formed before 2024 is March 21st, 2025
• Failure to file may result in a $592-per-day fine, up to a total of $10,000
Learn more about the Beneficial Ownership Information Report (BOIR) and how it can help your business stay compliant with the law.
The FinCEN BOI Report is a requirement under the Corporate Transparency Act (CTA) that mandates certain businesses, including small businesses, to disclose information about their beneficial owners and company applicants. A beneficial owner is typically someone who has significant ownership (25% or more) or control (directly or indirectly) over the company. The report helps the Financial Crimes Enforcement Network (FinCEN) and other authorities track who is behind companies to prevent illicit financial activities.
Generally, corporations, limited liability companies (LLCs), and similar entities are required to file the BOI report unless they qualify for an exemption. This applies to small businesses within these categories unless they are exempt. Exemptions are available for larger businesses that meet specific criteria, such as having more than 20 employees, gross receipts exceeding $5 million, or a significant operational presence, as well as for certain regulated entities like banks and investment companies. Small businesses that do not meet these exemptions will be required to file the BOI report to ensure compliance. (Note: This applies to foreign entities, though the specific obligations may vary depending on the business’s classification.)
A beneficial owner is defined as an individual who:
• Owns 25% or more of the company’s voting shares or ownership interests, or
• Has substantial control over the company (e.g., through decisions about key management or business decisions).
For small businesses, this often includes the company founders, major investors, or anyone with significant influence over the business. The company applicant refers to the person who files the formation documents for the company and is also required to be reported.
The BOI Report requires the following information about each beneficial owner and company applicant:
• Full legal name
• Date of birth
• Residential address (for individuals, not company address)
• Unique identifying number (e.g., passport number, driver’s license number, or another government-issued ID)
• Citizenship or legal status (for each beneficial owner)
Collecting data on every person with significant control in a small business is vital for FinCEN to track the individuals behind the company and prevent illegal activities.
Small businesses are required to file their initial BOI report within 30 days of incorporation or formation. For companies, the new deadline has been generally set for April 25th, 2025, by which time the first BOI report must be submitted to FinCEN. Following the initial filing, businesses must submit updates within 30 days if there are any changes in beneficial ownership (e.g., if an individual buys or sells ownership stakes, or if a new individual gains control). This ensures that FinCEN has current and accurate information about the company. (Note: This applies to foreign entities, though the specific obligations may vary depending on the business’s classification.)
The BOI report can be filed electronically through our online system. Small businesses will need to provide the necessary details about the business and its beneficial owners, and submit the information.
• You will need to provide a unique identifier for each beneficial owner (e.g., a passport or driver’s license number).
• After submitting the report, you will receive a confirmation, and you should keep that confirmation for your records.
• If you’re unsure about the filing process, please reach out to us directly for assistance.
Provide basic details on the reporting company including physical address, tax information number, such as the EIN and location of formation.
Provide the BOI of the reporting company. Information gathered will be residential address, birthdate and proof of identification.
Verify and acknowledge the details of the filing process, review timelines, and the importance of providing accurate information before submitting for filing.
Boir File Service is an application assistance and document filing service. We are not affiliated with any federal or state organizations. We do not provide legal, financial, or other professional advice. We are not a law or an accountancy firm nor are we affiliated with either. The information on our website is for general informational purposes only. Use of the website is subject to our Terms and Conditions and Privacy Policy.
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