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BOI Reporting

A Guide to Beneficial Ownership Information Reporting: What Your Business Needs to Know

With new compliance requirements in effect as of January 1, 2024, businesses need to be aware of the Corporate Transparency Act (CTA) and its impact. The CTA was enacted as part of the National Defense Authorization Act for Fiscal Year 2021. It requires that most small businesses and other entities disclose their Beneficial Ownership Information (BOI), which includes details about individuals who own or control these entities. This information will be used by law enforcement agencies to combat money laundering and other illegal activities.

Important Note:

As your trusted advisors, we want to reiterate that due to the legal nature of these filings, we will be unable to prepare them for our clients. However, we are providing you with the following guide to assist you in filing the Beneficial Ownership Information Report (BOIR) for your entities, and we will be available to answer any questions that you may have about the process outlined below.

“How To” Guide to File Your BOI Report:

1. Access the BOI Filing Portal:

2. Choose Your Preferred Filing Method:

    • Upload a finalized PDF version of the BOIR and submit it online or
    • Fill out the web-based version of the BOIR and submit it online.
      • Note: BOI reports cannot be sent by mail or fax to FinCEN. The individual submitting the report must provide their name and email address to FinCEN.
    • To download step-by-step guides for each method, visit the FinCEN Filling Help page. The following steps provide a general overview of the information that needs to be disclosed and submitted.

3. Prepare BOIR:

      1. Enter Entity Information:
        • Complete the initial BOIR by providing the entity’s name, address, jurisdiction of formation, and EIN (Employer Identification Number). A reporting entity that is disregarded as being separate from its 100% owner for U.S. federal income tax purposes—a “disregarded entity”—that does not have its own EIN–reports its owner’s Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) for foreign individuals, or EIN for an entity owned by another entity.
      2. Provide Information on Company Applicants (if applicable):
        • If your entity was created or registered after January 1, 2024, you will need to provide details about the individual who filed the formation or registration documents. This includes similar identifying information as required for beneficial owners.
      3. Identify Beneficial Owners:
        • Enter the information for each beneficial owner, including:
          1. Full legal name
          2. Date of birth
          3. Residential address
          4. Identification number (e.g., Social Security Number, Passport Number)
          5. Upload a copy of the identification document.
        • Alternatively, if you have many entities with the same beneficial owners, the individual owners can apply for a FinCEN ID, which can be used in lieu of the above information. This will save time when having to input the above information for the same beneficial owners of multiple entities. Visit the FinCEN ID Applications for Individuals page if you choose to apply.
        • If you choose not to apply for a FinCEN ID, then the field requesting the FinCEN ID number of the beneficial owner can be left blank.
      4. Review and Confirm:
        • Carefully review all the information you have entered to ensure its accuracy. Make any necessary corrections before proceeding.
      5. Submit the Report:
        • Once you have confirmed that all information is correct, submit your BOI report through the portal.
      6. Confirmation and Receipt:
        • After submission, you will receive a confirmation receipt. Select the “Download Transcript” button to download a PDF copy of the transcript for your records and proof of compliance.

Detailed instructions and FAQs are available on the FinCEN BOI Reporting Instructions page.

For some entities, particularly those with tiered ownership structures, determining if it is a required reporting entity and who is a reportable beneficial owner can be complex and requires a legal interpretation of the CTA. In these cases, or any other where there is uncertainty, we recommend that you consult with your legal counsel.

Based on the FinCEN BOI FAQs (D.18), in community property states, determining beneficial ownership may be influenced by state-specific community property laws. For example, if one spouse has an ownership interest in a reporting company, the other spouse might also be considered a beneficial owner, depending on the consequences of applying state law. If, under community property state law, both spouses collectively own or control at least 25 percent of the ownership interests in a reporting company, then both should be reported to FinCEN as beneficial owners unless an exception applies.

We are aware that there are numerous registered agent services that have developed websites with questionnaires (wizards) that can help walk you through the preparation and filing of your BOI reports for a stated fee. While we don’t endorse any one in particular, some of our clients have worked with the following companies:

Capitol Services (based in Austin, TX) – Submission deadline is December 13 
CTA website: https://www.capitolservices.com/cta
Telephone: (800) 345-4647
Email: orders@capitolservices.com or CTA@capitolservices.com

Wolters Kluwer CT Corporation System
Website: https://www.wolterskluwer.com/en/solutions/ct-corporation/resources/corporate-transparency-act-resources

We also want to inform you that FinCEN has issued an alert regarding fraudulent attempts to solicit information from individuals and entities potentially subject to reporting requirements under the Corporate Transparency Act.

These fraudulent scams may include:

  • Correspondence requesting payment. There is NO fee to file BOI directly with FinCEN. FinCEN does NOT send correspondence requesting payment to file BOI. Do not send money in response to any mailing that claims to be from FinCEN or another government agency.
  • Correspondence that asks the recipient to click on a URL or to scan a QR code. Those emails or letters are fraudulent. Do not click any suspicious links or attachments or scan any QR codes in emails, on websites, or in any unsolicited mailings.
  • Correspondence that references a “Form 4022,” or an “Important Compliance Notice.” This correspondence is fraudulent. FinCEN does not have a “Form 4022.” Do not send BOI to anyone by completing these forms.
  • Correspondence or other documents referencing a “U.S. Business Regulations Dept.” This correspondence is fraudulent; there is no government entity by this name.

If you encounter any issues or have questions during the filing process, please contact one of our professionals with whom you work with directly, or you can call our main office line at (915) 544-6950 or send an email to adminlbc@lb-cpa.com. While we cannot prepare or file these reports on your behalf, we can definitely guide you with the process.

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