What Is BOI ?
What is BOI?
BOI refers to "beneficial ownership information," which is the reporting of significant control persons within a company. The U.S. government implemented this new regulation on January 1, 2024, which has already taken effect, to better regulate shell companies specifically established for money laundering or tax evasion.
Which companies need to report BOI?
According to the Fincen government website, for U.S. companies, any corporation, limited liability company, and other types of entities that file documents with the states are required to report BOI. For foreign companies, those that apply and are permitted to do business within the U.S. must also report. Companies such as insurance companies, banks, government agencies, power companies, and tax-exempt entities, among similar 23 types of entities, are exempt from this requirement. Almost all other companies are required to report.
Reporting deadlines:
For companies established before 2024, they must complete registration by January 1, 2025.
For companies established in 2024 and after, they need to complete registration within 90 days of establishment. If there are errors in the submitted information, accurate information must be resubmitted within 30 days of the initial submission.
What happens if you don't do BOI reporting?
If a company does not submit the required information within the deadline, it may face a daily penalty of $500 (up to $10,000). In severe cases, the beneficiaries might face up to two years in prison. Therefore, it's crucial for everyone to complete their reporting within the deadline.
