Understanding BOI Filing Requirements: Does Your Business Need to File?
As part of the Corporate Transparency Act (CTA), many U.S. businesses, including LLCs like Undique, may now need to file Beneficial Ownership Information (BOI) with FinCEN. This new federal requirement aims to increase transparency and combat financial crimes by identifying individuals who own or control companies.
Who Needs to File?
Most small businesses, including corporations and LLCs, must file unless they meet one of 23 exemptions outlined by FinCEN. Common exemptions include:
- Publicly traded companies.
- Regulated entities such as banks and credit unions.
- Large operating companies with more than 20 employees, over $5 million in revenue, and a physical U.S. presence.
What Is Required?
Companies that must file will need to submit:
- Legal and trade names of the business.
- Details of beneficial owners (name, birthdate, address, and identification documents).
- Information about company formation.
Deadlines to Know
- Businesses formed before January 1, 2024, must file by January 1, 2025.
- Businesses formed on or after January 1, 2024, must file within 30 days of formation.
Why It Matters
Failure to comply with BOI filing requirements can result in significant penalties. This is a new step in ensuring transparency but also a critical one for business owners to understand.
Stay informed and plan ahead to meet the CTA’s new regulations. For more details, visit FinCEN’s BOI FAQs.