Hey there,

Small-business owners! Heads up: there's an important deadline coming up on January 1, 2025, that you need to know about. It's all about the beneficial ownership information (BOI) reporting required by the Corporate Transparency Act.

This act is designed to combat illegal activities like money laundering, fraud, and terrorism funding by making businesses disclose who actually owns them. If your business falls under this requirement, you'll need to submit a BOI report on the Financial Crimes Enforcement Network (FinCEN) website by the deadline. Not sure if this applies to your business or what steps you need to take? Don't worry! We'll walk you through which businesses need to report, what the requirements are, and how to file your report. Let's get started!

What is beneficial ownership information?

Beneficial ownership information is identifying details (name, date of birth, address, passport or driver’s license number) about individuals who own or control a company. You may be a beneficial owner if you directly or indirectly exercise “substantial control” over, or own or control at least 25% interest in a business.

According to FinCEN, you may exercise substantial control over a company if you fall into any of the following categories:

Who has to file a BOI report?

• A corporation, limited liability company or other entity created by filing a document with a secretary of state or any similar office in the U.S. (or in one of its territories).

• A foreign company (including corporations and LLCs) that’s registered to do business in the U.S. through official filings.

What information is required for BOI reporting?

If your business qualifies as a reporting company, you’ll need to complete and submit a BOI report through the FinCEN website. As part of this report, you’ll need to provide details about your company and its beneficial owner, including:

Company information

• Its legal name.

• Any trade names or “doing business as” names.

• Current street address.

• Jurisdiction of formation or registration.

• Taxpayer identification number.

Beneficial owners information

• Name.

• Date of birth.

• Residential address.

• Identifying number from an acceptable identification document (such as a passport or U.S. driver’s license) and name of the issuing state or jurisdiction of that document.

• Image of the document used to obtain the identifying number.

If your business was created or registered on or after Jan. 1, 2024, you’ll also need to provide information about company applicants. A company applicant is an individual who directly files (or is primarily responsible for filing) the document that creates or registers your company.

For example, if you worked with a startup lawyer to draft and submit your formation paperwork, that individual would be considered a company applicant.

You’ll need to submit the same information for company applicants as is required for beneficial owners.

When to file a BOI report

The deadline for meeting the BOI reporting requirement varies based on when your business was created or registered to do business:

How to file a BOI report

You submit a BOI report through FinCEN's website. You can complete your report as a PDF or you can use FinCEN’s online system. There’s no charge to file a report through FinCEN.

If you choose to complete your report as a PDF, you’ll need access to Adobe Reader. You download the PDF BOI report file, input your information and upload the final product to the FinCEN website. If you use the online system, on the other hand, you’ll simply follow the prompts, provide your information and submit the form.

After you submit the BOI report (using either method), you’ll have the ability to download a copy and receive a confirmation of receipt. If at any time you need to make an update to or correct your report, you’ll be able to follow the same steps to submit an amended version.

You also have the option to work with a third-party service provider, such as Taxagon to submit your beneficial ownership information report. We will file your report, as well as manage any changes on your behalf.