BENEFICIAL OWNERSHIP INFORMATION
Block Advisors can help you file your Beneficial Ownership Information Report
32 million+ businesses are subject to the Corporate Transparency Act
Answer a few simple questions to determine if your business is one of them.
Does this apply to my business?
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All domestic businesses created by registering with a state are subject to the Corporate Transparency Act. This includes corporations, LLCs, limited partnerships, and limited liability partnerships (LLPs) to name a few. Foreign businesses that are registered to do business in any state are also subject to the CTA.
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Most business entities are not exempt from the Corporate Transparency Act. Exemptions generally include:
- Businesses that are already federally regulated, such as financial institutions, publicly traded companies, and insurance companies.
- Large businesses with at least 20 full-time employees, over $5 million in gross receipts, and a substantial U.S. presence.
FAQs
On February 18, 2025, FinCEN established a March 21, 2025 filing deadline for most companies. According to FinCEN:
- For the vast majority of reporting companies, the new deadline to file an initial, updated, and/or corrected BOI report is now March 21, 2025. FinCEN will provide an update before then of any further modification of this deadline, recognizing that reporting companies may need additional time to comply with their BOI reporting obligations once this update is provided.
- Reporting companies that were previously given a reporting deadline later than the March 21, 2025 deadline must file their initial BOI report by that later deadline. For example, if a company’s reporting deadline is in April 2025 because it qualifies for certain disaster relief extensions, it should follow the April deadline, not the March deadline.
On March 3, 2025, the Treasury Department announced that it will not enforce any penalties or fines associated with BOI reporting under existing deadlines (including the March 21 deadline) nor will it impose any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes except from FinCEN take effect.
The BOI Report provides information about the individuals who ultimately own or substantially control the business entity. This is important because entities are formed through state governments and information about these entities is not necessarily communicated to the federal government by the state government.
Beneficial ownership refers to the individuals who own or control the entity directly or indirectly, regardless of whether their names appear on official documentation. This includes those individuals who exercise significant control over the company’s operations, decision making and financial matters, even if they don’t have an ownership interest. According to FinCEN, reporting beneficial ownership information is important to promote transparency, prevent financial crimes, and ensure accountability within businesses.
The Financial Crimes Enforcement Network (FinCEN) is a bureau within the U.S. Treasury Department. Its role is to safeguard the U.S. financial system by identifying and providing information about financial crimes, including money laundering and financial terrorism, to the government bodies that prosecute these crimes.
The “Reporting Company” definition generally includes entities that were created by filing organizing documents with a secretary of state or similar office, such as LLCs, corporations, limited partnerships, and foreign entities registered to do business in any U.S. state. Some entities, like heavily regulated financial institutions, tax-exempt organizations, inactive businesses, and others that meet specific operating criteria, are exempt from the BOI Report requirement.
You may want to file an updated report within 30 days when there are changes or corrections to any information provided in the BOI Report or changes to exemption eligibility.
As of March 3, 2025, the Treasury Department announced that it will not enforce any penalties or fines associated with BOI reporting under existing deadlines (including the March 21 deadline) nor will it impose any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes except from FinCEN take effect.
A BOI Report typically requires disclosing the names, addresses, birthdates, and ownership percentages of individuals who directly or indirectly own or control the business. Owners are also required to report an identification number, such as a driver’s license or passport number, along with a picture of the document. A social security number cannot be used for a BOI Report.
Yes, you can file your own BOI Report directly with FinCEN. However, using a service, like Block Advisors, provides an easy-to-use platform and resources to help you navigate the information gathering and filing process, saving you time and reducing the risk of harsh penalties.