Pursuant to the Corporate Transparency Act of 2021, U.S. companies are now required to disclose certain Beneficial Ownership Information (BOI). While this law has been on the books for a few years now, the grace period is almost over. The Financial Crimes Enforcement Network (FinCEN) mandates that corporations and limited liability companies registered in the United States comply with the BOI reporting requirement no later than January 1, 2025.
If your company has not yet completed BOI reporting, now’s the time! Some businesses are exempt from the filing requirement, and you can check if your company qualifies for such an exemption here: https://www.fincen.gov/boi-faqs#C_2. If you are not exempt, here’s a step-by-step guide on how to file a BOI report with FinCEN:
Step 1: Understand the BOI Reporting Requirements
Before starting the filing process, familiarize yourself with the requirements. FinCEN requires certain entities, such as corporations, limited liability companies, and other similar entities, to report their beneficial ownership information. This includes:
- Identifying Information: Names, addresses, dates of birth, and identification numbers (e.g., Social Security numbers) of beneficial owners.
- Entity Information: Name, address, and EIN of the reporting entity.
Step 2: Access the FinCEN BSA E-Filing System
To file a BOI report, use the Bank Secrecy Act (BSA) E-Filing System provided by FinCEN, or alternatively contact us if would like assistance. To file the form yourself, follow these steps to access the system:
- Visit the BSA Website’s E-Filing System at https://bsaefiling.fincen.treas.gov.
- Register for an Account: If you don’t already have an account, click on “Enroll” to create one. You’ll need to provide your email address and other necessary details.
- Log In: Once your account is set up, log in using your credentials.
Step 3: Complete the BOI Report Form
After logging in, complete the BOI report form. Follow these instructions:
- Select the BOI Report Form: Choose the appropriate BOI report form from the list of available forms.
- Enter Entity Information: Fill in the required details about the reporting entity, including its legal name, address, and EIN.
- Enter Beneficial Owners’ Information: Provide the required details for all beneficial owners, including their names, addresses, dates of birth, and identification numbers.
- Review and Confirm: Carefully review all the information entered to ensure accuracy. Any errors can lead to compliance issues.
Step 4: Submit the BOI Report
Once you’ve completed the form and reviewed all the information:
- Submit the Report: Click the “Submit” button to file the report with FinCEN.
- Confirmation: After submission, you will receive a confirmation receipt. Save this receipt for your records as proof of filing.
Step 5: Maintain Records
FinCEN requires that you keep records of the information reported for at least five years from the date of filing. Ensure that your records are securely stored and easily accessible for future reference. More guidance can be found here: https://www.fincen.gov/boi/small-entity-compliance-guide.
If you’re unsure about any aspect of the BOI reporting process, or have questions relating to Money Services Business (MSB) registration or any other FinCEN concern, please contact us! Our team will be happy to help.
Article by R Tamara de Silva