BOI E-Filing

⚠️ NOTICE: Failure to file Beneficial Ownership Information Report before the federal deadline may result in penalties of up to $591/day. 

Beneficial Ownership Information Reporting

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Understanding the Role of a Beneficial Owner in Business Transparency

If your business is subject to the Corporate Transparency Act (CTA), you need to understand the concept of a beneficial owner. Identifying beneficial owners is key to meeting the reporting requirements set out by the U.S. government. But who exactly is a beneficial owner, and what does it mean for your business?

Who Qualifies as a Beneficial Owner?

A beneficial owner is anyone who:

  1. Directly or indirectly owns or controls 25% or more of the company’s ownership interests, or
  2. Exercises substantial control over the business’s decisions and operations.

Common examples of beneficial owners include major shareholders, senior officers like the CEO or CFO, or individuals with the authority to appoint or remove board members.

Substantial Control: What Does It Mean?

Substantial control goes beyond ownership. A person with substantial control might not own shares but has significant influence over the company’s decisions. This could be a senior executive or an important decision-maker. Businesses must identify these individuals to comply with federal regulations.

Why It Matters

The federal government’s goal is to increase transparency and reduce the ability for bad actors to hide behind shell companies. By requiring businesses to report beneficial ownership, the U.S. is cracking down on financial crimes like money laundering and tax evasion.

Ensuring Compliance with BOIR Reporting Service

Understanding who qualifies as a beneficial owner is essential for timely and accurate reporting. BOIR Reporting Service helps you identify these individuals and file the required report with FinCEN. We take the guesswork out of compliance, ensuring your business remains in good standing.