If you own a small business, there’s a new filing requirement you might need to know about: the Beneficial Ownership Information Report (BOIR). This filing is required by the Corporate Transparency Act (CTA) to help the government keep track of who owns and controls U.S. companies, making it harder for people to hide illegal activities. Here’s a simple guide on what this means for you.
What is the BOIR?
The BOIR is a government filing that requires many businesses to report details about the people who own or control them. The information goes to the Financial Crimes Enforcement Network (FinCEN) to prevent things like money laundering and tax evasion.
Who Needs to File?
Most U.S. companies, such as corporations and LLCs, need to file a BOIR. Here’s a breakdown:
If your business was registered before January 1, 2024: You must file by January 1, 2025.
If your business is registered on or after January 1, 2024: You need to file within 30 days of registering.
Exemptions: Large companies (those with more than $5 million in sales, over 20 employees, and a U.S. office) and publicly traded companies don’t have to file.
Who Counts as a Beneficial Owner?
A beneficial owner is anyone who:
Owns 25% or more of the business
Has significant control over how the business is run
What Information is Required?
For each beneficial owner, you’ll need to provide:
Full name
Date of birth
Residential address
ID number (like a driver’s license or passport number)
Why is This Important?
Filing your BOIR accurately and on time is essential to avoid fines and other penalties. It’s the law, and it helps make the business environment more secure by stopping criminal misuse of businesses.
Need Help Filing?
If you’re unsure about whether you need to file or how to complete your BOIR, our team at RLS Professional Services can assist you. Get in touch, and we’ll help you stay compliant, hassle-free!
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