Beneficial Ownership Information Report deadline is January 13th, 2025. Failure to file before this deadline will result in penalties of up to $591 per day.
If you’ve been following recent financial compliance news, you may have come across the term “Beneficial Ownership Information Report,” often shortened to BOIR. But what is the BOIR, and why is it becoming such a critical aspect of modern business operations?
In this post, we’ll break down everything you need to know about the BOIR—what it is, why it exists, who needs to file, and how to stay compliant. By understanding this vital regulatory requirement, you can better protect your company’s reputation, reduce legal risks, and maintain transparent business practices.
A BOIR is a formal regulatory filing that discloses the identities of a company’s “beneficial owners.” These beneficial owners are the real individuals who ultimately own or control a business entity. The report is designed to shine a light on the people behind the corporate veil, helping governmental agencies and financial institutions fight financial crimes like money laundering, tax evasion, and terrorist financing.
Under the Corporate Transparency Act (CTA), which authorizes the collection of beneficial ownership data, the Financial Crimes Enforcement Network (FinCEN) is responsible for maintaining a secure database of these records. The BOIR ensures that there’s a traceable record of who truly controls and benefits from any given company.
The Corporate Transparency Act and the subsequent BOIR requirement emerged in response to the growing need for transparency in global financial systems. Too often, illicit actors hide behind shell companies and complex corporate structures to mask their true identities and facilitate illegal activities. By requiring a BOIR, regulators aim to:
While exemptions do exist, most domestic and foreign entities doing business in the U.S. are subject to BOIR requirements. This typically includes:
To understand who appears in the BOIR, it’s crucial to identify beneficial owners. They typically include individuals who:
Your BOIR must contain accurate, up-to-date details on each beneficial owner, including:
This ensures that law enforcement, regulatory bodies, and financial institutions can verify identities and conduct due diligence.
Existing Entities (Formed Before January 1, 2024): Must submit their initial BOIR by January 1, 2025.
New Entities (Formed On or After January 1, 2024): Must file their BOIR within 30 days of formation or registration.
Failing to meet these deadlines can lead to significant penalties, so it’s crucial to mark them on your compliance calendar.
Most businesses will file their BOIR electronically through FinCEN’s secure online platform. Before filing, compile all necessary identification documents and verify all beneficial owner details for accuracy. Consulting with a legal or compliance expert can also help ensure that you meet all requirements on your first attempt.
The BOIR is not a one-and-done obligation. Companies must maintain updated records and re-file whenever there’s a change in beneficial ownership information. Proactive steps include:
The Beneficial Ownership Information Report is more than just another regulatory requirement—it’s a cornerstone of the U.S. government’s effort to promote transparency, prevent fraud, and maintain a trustworthy business environment. By understanding what the BOIR is, who needs to file, and how to remain compliant, you can protect your business from legal pitfalls and build a foundation of trust with customers, investors, and regulatory authorities.
3 Days Left: Deadline for entities formed before 2024 is approaching.
FILETHEBOIR.COM exists to simplify the process for businesses to submit their Beneficial Ownership Information Report. We are an independent entity and are not connected to the U.S. Government or the Financial Crimes Enforcement Network (FinCEN). You can also file your BOIR directly with FinCEN at no charge by visiting www.fincen.gov.