Frequently Asked Questions About BOI Filing and Beneficial Ownership Information

In response to the Corporate Transparency Act (CTA), the Financial Crimes Enforcement Network (FinCEN) has rolled out new regulations requiring certain entities to report their Beneficial Ownership Information (BOI). This guide provides answers to some of the most common questions about BOI filing requirements.


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1. What is Beneficial Ownership Information (BOI)?

Beneficial Ownership Information refers to details about individuals who directly or indirectly own or control a company. This includes information such as full legal name, date of birth, address, and unique identifying numbers. The goal is to identify those who have significant control over or benefit from the entity’s operations. For more details, visit FinCEN’s FAQ on BOI at www.fincen.gov/boi/beneficial-ownership-information-frequently-asked-questions.


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2. Who is required to file BOI reports?

Entities classified as “reporting companies” under the CTA are required to file BOI reports. This includes corporations, limited liability companies (LLCs), and similar entities created or registered to do business in the U.S. However, certain entities like publicly traded companies and specific regulated entities are exempt. You can find a detailed list of exemptions at www.fincen.gov/boi/beneficial-ownership-information-frequently-asked-questions.


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3. What information must be reported?

Reporting companies must submit the following:

Entity Information: Legal name, trade or DBA names, principal business address, jurisdiction of formation, and Taxpayer Identification Number (TIN).

Beneficial Owner Information: For each beneficial owner, include the full legal name, date of birth, residential or business address, and a unique ID number from a valid identification document (e.g., passport or driver’s license).


See FinCEN’s instructions for BOI reporting requirements at boiefiling.fincen.gov/resources/BOIR_Filing_Instructions.pdf.


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4. How is a “beneficial owner” defined?

A beneficial owner is any individual who:

Exercises substantial control over the reporting company.

Owns or controls at least 25% of the ownership interests in the company.


This includes individuals with significant management roles, such as senior officers or those with decision-making authority. More information is available on FinCEN’s FAQ page: www.fincen.gov/boi/beneficial-ownership-information-frequently-asked-questions.


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5. When are BOI reports due?

Existing Entities (formed before January 1, 2024): Must file their initial BOI report by January 1, 2025.

New Entities (formed on or after January 1, 2024): Must file within 30 days of formation or registration.

Updates: Changes to previously reported information must be submitted within 30 days of the change.


For a full timeline, see FinCEN’s filing instructions at boiefiling.fincen.gov/resources/BOIR_Filing_Instructions.pdf.


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6. How can BOI reports be filed?

BOI reports can be filed electronically through FinCEN’s secure filing portal. Access the online portal and resources at boiefiling.fincen.gov/fileboir.


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7. What are the penalties for non-compliance?

Failure to comply with BOI reporting requirements can result in:

Civil Penalties: Up to $500 per day for each day the violation continues.

Criminal Penalties: Fines up to $10,000 and imprisonment for up to two years for willful violations.


For specifics on penalties, visit www.fincen.gov/sites/default/files/shared/BOI-FAQs-QA-508C.pdf.


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8. Are there any exemptions to the reporting requirements?

Yes, the CTA provides exemptions for specific entities, including:

Publicly traded companies

Certain regulated entities like banks and credit unions

Large operating companies that meet certain criteria


A full list of exemptions is available at www.fincen.gov/boi/beneficial-ownership-information-frequently-asked-questions.


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9. How will the reported information be used?

The information collected is intended to:

Aid law enforcement in combating financial crimes.

Increase transparency in corporate structures.

Prevent the misuse of legal entities for illicit purposes.


Access to this information is limited to authorized government authorities and financial institutions for due diligence purposes. Find more details at www.fincen.gov/boi/beneficial-ownership-information-frequently-asked-questions.


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10. Where can I find more information or assistance?

For more detailed guidance, visit FinCEN’s official website at www.fincen.gov/boi. FinCEN offers resources, FAQs, and contact information to assist with BOI filing requirements.


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Understanding and complying with BOI filing requirements is essential for U.S.-based entities. Staying informed and submitting timely reports will help avoid penalties and contribute to a more transparent financial system.