How BOI Reporting will impact your business and what your next steps could be
We have been closely monitoring updates regarding The Corporate Transparency Act (CTA). There are recent crucial developments that businesses should be aware of. Christianson has compiled a list of our most frequently asked questions and what’s required to maintain compliance.
What is CTA?
CTA is a 2021 bill that looked to combat illicit financial activities. This legislation aims to curb money laundering through shell companies by creating transparency of owners as it relates to national security. This introduces Beneficial Ownership Information (BOI) Reporting.
What is (BOI) Reporting?
BOI reporting mandates businesses to disclose information about their beneficial owners to authorities. A BOI report provides U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) information about all of a company’s beneficial owners.
What is meant by “Beneficial Ownership”?
Beneficial ownership refers to individuals who directly or indirectly own or control a significant portion of a business. These individuals may include those with a certain percentage of ownership or control, such as executives, managers, or shareholders.
Is BOI Reporting optional?
No. All businesses and their owners, plus key executives under non-exemption must maintain a record with the U.S. Department of Treasury.
When does BOI Reporting come into effect?
An initial submission is required by December 31, 2024, of all relevant parties and current identification. Ongoing information changes are due within 90 days.
If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.
If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
If I annually renew my business registration with the Secretary of State, can I disregard BOI Reporting?
No. While there are similar items that are reported, BOI Reporting is stored securely by FinCEN and is a separate requirement from any state registration.
Are the consequences of non-compliance with BOI Reporting serious?
Yes. Penalties accumulate per day and could include jail time.
Can Christianson manage the BOI Reporting process for me?
Yes. We are now one of a select few offering services for BOI reporting. A signed engagement letter will be required to perform this work with an annual subscription fee. If you’d like to learn more, call us at 320.235.5937 or fill out the form below.
