Beneficial Ownership Information

Key Takeaways

Businesses required to file a Beneficial Ownership Information (BOI) report with FinCEN must comply to avoid fines of up to $10,000 or imprisonment for non-compliance.
BOI reports can be filed directly with FinCEN at no cost – beware of third-party sites charging unnecessary fees.
BOI reports must include detailed information about the business and its beneficial owners, such as names, addresses, and identification documents.

If you’re a business owner, staying compliant with federal regulations is a must for maintaining your operations and avoiding penalties. One requirement for certain businesses is filing a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). Here we'll explain what BOI reporting is, what information is required, and what happens if you don’t comply.

What Is a Beneficial Ownership Report?

A Beneficial Ownership Report is a requirement under the Corporate Transparency Act (CTA) to provide information about individuals who own or control your business. This reporting helps the government combat illegal activities like money laundering and terrorism financing by improving transparency around business ownership.

Why is Beneficial Ownership Information important?

Accurate and timely BOI reporting ensures compliance with federal regulations and helps protect the integrity of the financial system. By providing transparency, these reports also safeguard your business from being inadvertently linked to illicit activities.

BOI Reporting for LLCs and Other Businesses

If your business is a Limited Liability Company (LLC), corporation, or similar entity created or registered in the United States, you’re likely required to file a BOI report. Exceptions apply to certain businesses, such as large operating companies and government entities.

The information is filed directly with FinCEN and can be done without incurring fees. That’s right – filing directly through FinCEN is free, so don’t fall for any third-party websites that charge for this service!

What Happens If I Don’t File a BOI Report?

Even if your business hasn’t received direct notification, the responsibility to comply still applies. Failure to file a BOI report can lead to serious consequences, including:

Civil penalties: Fines of up to $500 per day for every day the report is late.
Criminal penalties: Fines of up to $10,000 and imprisonment for up to two years for willful non-compliance.

Those penalties are not worth it when you can take care of this legal step for free.

How to File Your BOI Report

To file your BOI report, visit FinCEN's official website. You’ll find resources and instructions to complete your filing at no cost. Avoid using third-party websites that charge unnecessary fees.

What Beneficial Ownership Information is required?

When filing a BOI report, you’ll need to provide the following:

Company Information:
- Legal name
- Trade or "doing business as" name (if applicable)
- Address
- Taxpayer Identification Number (TIN)
Beneficial Owner(s) Information:
- Full legal name
- Date of birth
- Current residential or business address
- An identifying number from an acceptable document (e.g., driver's license, passport)
- A scanned copy of the identifying document
Company Applicant Information (if applicable):
- Information about the individual(s) who filed the business formation documents

We’re here to support your success. If you have questions about BOI reporting requirements or need assistance, connect with a OneAZ Business Banker. Staying informed and compliant can save you time, money, and stress in the long run.