BOI Report

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Beneficial Ownership Information (BOI)

What's the new federal requirement for businesses in 2024?

Congress passed the bipartisan Corporate Transparency Act to combat illicit financing. This law mandates that many businesses operating in the United States disclose information about their owners or controllers.

Starting January 1, 2024, numerous U.S. companies must report details about their beneficial owners—the individuals who ultimately own or control the company—to the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury. This Beneficial Ownership Information Report (BOIR) only needs to be submitted once, unless the company needs to update or correct the information.

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Ownership Details
Identifies individuals with significant control or ownership of the company.
Single Submission
Required once unless there are updates or corrections needed.
Data Accuracy
Ensures accurate identification and records of beneficial owners.
Anti-Fraud
Designed to prevent illicit financing and fraudulent activities.
Confidential Filing
Information submitted is securely handled and kept confidential.
Compliance Mandate
Mandatory for many businesses operating within the USA.
Regulatory Authority
Overseen by the Financial Crimes Enforcement Network (FinCEN).
Effective Date
Requirements begin on January 1, 2024.
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Required vs. Exempt

Who has to report?

The companies required to report are called Reporting Companies. These companies may need to obtain information from their beneficial owners and report it to FinCEN. Most small businesses will be required to file a BOIR. Your company may be required to report beneficial ownership information if:

  1. Domestic reporting companies

    Corporations, limited liability companies and any other entity created by filing a document with a secretary of state or any similar office in the USA.

  2. Foreign reporting companies

    Entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States.
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Who is NOT required to report?

While most small businesses are required to report their beneficial ownership information, there are a few businesses that do not need to file. Twenty-three types of entities are exempt from the beneficial ownership reporting requirements, including publicly traded companies, nonprofit organizations and certain large operating companies. ​See the Small Entity Compliance Guide. Companies and services that do not have to file a report include:

  • Brokers and financial agents
  • Money transfer or money transmission service companies.
  • Certain banks and bank holding companies.
  • Large companies with more than $5,000,000 in gross sales that have a physical operating office in the U.S. and more than 20 full-time employees.
    • Registered Agent in the United States
    BOI Report

    Why do companies have to report to The U.S. Treasury Department?

    In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the US government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

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    When do I report?

    Filing with us is simple and secure. FinCEN began accepting reports on January 1, 2024. Companies that are required to comply (reporting companies) must file their initial reports by the following deadlines:

    Existing Companies
    If your company was created or registered before January 1, 2024, you will have until January 1, 2025 to file the BOI.
    Companies Created In 2024
    If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving notice that the creation or registration of your company is effective, whichever occurs first.
    Beneficial Ownership Information

    BOI Report FAQs

    Discover answers to common questions about the BOI Report and ensure your compliance with International Trading Center easily.
    • What is the BOI Report?

      The BOI (Beneficial Ownership Information) Report is a document that identifies the beneficial owners of a company, as required by FinCEN.

    • Who is the beneficial owner of a company?

      A beneficial owner is a person who, either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests.

      A reporting company can have one or more beneficial owners.

    • What happens if a reporting company does not submit the boir?

      A person who willfully violates BOI reporting requirements may be subject to civil penalties of up to $500 for each day the violation continues. That person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Possible violations include deliberately failing to report beneficial ownership information, deliberately submitting false beneficial ownership information, or deliberately failing to correct or update previously reported beneficial ownership information.

    • What happens if a reporting company does not submit the boir?

      An individual can exercise substantial control over a reporting company in four different ways. If the person falls into any of the following categories, the person is exercising substantial control:

      • The person is a senior officer (the company’s president, chief financial officer, general counsel, chief executive officer’s office, chief operating officer or any other officer performing a similar function).
      • The person has authority to appoint or remove certain officers or a majority of the directors (or similar body) of the reporting company.
      • The individual is an important decision-maker for the reporting company.
      • The individual has any other form of substantial control over the reporting company, as explained in more detail in the Compliance Guidance for FinCEN’s Small Entities Compliance Guide.

    • How ITC Can Help You Prepare and Submit the BOIR

      Your request to comply with the BOIR will be made by ITC – International Trading Center LLC, with many years of experience in the management and submission of corporate information to governmental entities.

      With ITC’s support you can:

      • Send BOIR
      • Ensuring compliance
      • Individualized contact
      • Avoid costly fines (up to $500 per day)
      • Compliance with automatic reminders

    • Who is required to file the BOI Report?

      All reporting companies operating in the U.S. are required to file the BOI Report with FinCEN. This includes foreign business owners.

    • What is FinCEN?

      FinCEN (Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions to combat money laundering and other financial crimes.

    • When did FinCEN begin accepting BOI Reports?

      FinCEN began accepting BOI Reports on January 1, 2024.

    • What information needs to be included in the BOI Report?

      The BOI Report must include information about the beneficial owners of the company, including their names, addresses, dates of birth, and Social Security numbers or other identifying details.

    • What are the deadlines for submitting the BOI Report?

      Reporting companies must submit their initial BOI Reports by the following deadlines:

      • Existing Companies: If your company was created or registered before January 1, 2024, you will have until January 1, 2025 to file the BOI.
      • Companies Created in 2024: If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving notice that the creation or registration of your company is effective, whichever occurs first.

    • How often do I need to file the BOI Report?

      The BOI Report must be filed annually, and any changes in beneficial ownership must be reported promptly.

    • What are the penalties for failing to file the BOI Report?

      Failure to file the BOI Report or providing false information can result in significant penalties, including fines (USD$500/daily) and criminal charges.

    • How can I file the BOI Report?

      The BOI Report can be filed electronically through the FinCEN online portal. While this service is free, for secure and optimal compliance, contact ITC to professionally fill your BOIR.

    • Can I amend a previously submitted BOI Report?

      Yes, amendments to a submitted BOI Report can be made if there are changes in beneficial ownership information or if errors need to be corrected.

    • What should I do if I am unsure whether I need to file the BOI Report?

      If you are unsure about your filing requirements, it's best to consult with a legal advisor or contact FinCEN directly for guidance.

    • Are there any exemptions to BOI reporting requirements?

      Certain entities, such as large operating companies, government-owned entities, and regulated financial institutions, may be exempt from BOI reporting requirements.

    • How does FinCEN use the information in the BOI Report?

      FinCEN uses the information to enhance transparency, combat money laundering, and prevent financial crimes by identifying the individuals who ultimately own and control companies.

    • How can ITC help with the BOI Report?

      ITC can assist by providing guidance on compliance, helping prepare and submit the BOI Report, and ensuring all required information is accurate and complete. For professional assistance, the cost is:

      • $70 for one beneficial owner
      • $120 for more than one beneficial owner

    • Where can I find more information about BOI reporting requirements?

      More information can be found on the FinCEN website or contact ITC to consult with a compliance expert or legal advisor.

    • $70 for one beneficial owner
    • $120 for more than one beneficial owner

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