What is Beneficial Ownership Information Reporting (BOIR)?

The Corporate Transparency Act (CTA) requires many companies to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). 

What is Beneficial Owner?

A beneficial owner is a natural person (an individual) who ultimately benefits from the ownership of an asset or exerts significant control over a company, even if their name doesn’t appear on legal ownership documents.

Key Concepts:

• Control: A beneficial owner can exert substantial influence over a company’s operations or assets. This includes roles like CEO, COO, CFO, other senior officers, or individuals with significant decision-making power, regardless of the legal title.
• Ownership Threshold:An individual owning 25% or more of a company’s equity is automatically considered a beneficial owner.

Who Must File a BOIR?

The following companies must file a BOIR:

• Corporations (C & S corporations)
• Limited Liability Companies (LLCs)
• Other similar entities created by filing with a secretary of state or similar office.

Exemptions: Some companies are exempt, including publicly traded companies, banks, large operating companies (more then 20 full time US Based employees, over $5 million in gross receipts), Investment Companies, Insurance Companies, Most 501(c) organizations

Why File a BOIR?

• Legal Compliance: The CTA makes BOIR filing mandatory for applicable companies. Non-compliance can result in penalties.
  • Penalties for Non-Compliance
    • Civil Penalties:Up to $500 per day for each day the report remains unfiled.
    • Criminal Penalties:Willful failure to file or providing false information can result in: Fines of up to $10,000 
  • Transparency: Reporting helps prevent shell companies from hiding illegal activities.

Filing Deadlines

• Companies existing before January 1, 2024: Must file by January 1, 2025.
• Companies created between January 1, 2024 and Dec 31, 2024: Must file within 90 days of receiving notice that their creation/registration is effective.
• Companies created after January 1, 2025: Must file within 30 days of receiving notice that their creation/registration is effective.

Our Filing Service

• We streamline the BOIR filing process for you.
• This is a one-time filing (unless beneficial ownership or company address changes).
• We offer this service for a competitive $149 fee.
• We will need a photo copy of all beneficial owner’s drivers license to upload to FinCEN with the BOIR form

Our service offers convenience, advice, support, and expertise; it will save you time

Important Note: You can file the BOIR yourself through the FinCEN portal. Our service offers convenience and expertise.

For questions please contact john@ggocc.com or +1 863-602-1274 any time