Your Beneficial Ownership Information Requirements
As a small business owner or employee, you already have so many things to take care of, and hearing of the new requirement that all businesses report their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN) may just seem like another task to add to your already full list. You may not know where to start with this process, and that is why we are here to help make it as smooth as possible. To make sure you are aware of everything FinCEN expects from your small business, take a look at the requirements for filing your Beneficial Ownership Information report.
Who Needs to File FinCEN is requiring both domestic and foreign companies to register. This includes all limited liability companies, corporations, and other entities that are created by filing documents with government offices. For foreign entities, this includes those that were created under the laws of other countries but have registered to conduct business in the US. This applies to you, no matter the size of your company.
Timelines
Though FinCEN began requiring BOI reports in September 2022, it has only recently become mandatory for small businesses. The way the filing system works is that if your business was established before the first of the year, 2024, you have until the first of the year, 2025 to file without facing any repercussions. If your company was established between these two dates, you will have 90 days to file from the date of your business’s establishment. When companies are established after January 1st, 2025, they will have a 30-day window to file. You and your business have plenty of time to file, but do not leave it to the last minute!
What You Need
When filing, each of your entity’s beneficial owners needs to submit four pieces of important information—birthdate, name, address, and unique ID number. A passport or a driver’s license would work. If you are unsure about who would count as a beneficial owner, take a look at FinCEN’s FAQ link here.
Where to File
The process of filing your BOI report is done online through FinCEN’s website. You may want to first get a FinCEN ID, which you can acquire by filling out found at this link. You will need to submit some information to get your unique FinCEN ID number. This is not required to file, but it can be used instead of having to submit the required personal information. Once you have everything you need, navigate to this link to start filing. On the page, there is a filing portal and many helpful resources if you are confused. It’s as easy as that!
Learning everything you can about this report can help you file it quickly and without any hitches, letting you get back to what is important to you and your business. We here at 1st Advantage Bank are here to help you with all of your business needs, from new and specific concerns like your BOI report to everyday business functions, financing, banking, and expert advice. If you or your business need financial help or you are curious about our options and services, feel free to contact us. We are here for you and your local business, now and always. Member FDIC and Equal Housing Lender