Navigating the complexities of the Corporate Transparency Act (CTA) can be daunting. Our comprehensive Beneficial Ownership Information (BOI) report service is designed to make compliance straightforward and hassle-free. Let us handle the details so you can focus on what matters most—growing your business.
Ensure Compliance with the Corporate Transparency Act (CTA)
Table of Contents
Understanding the Corporate Transparency Act (CTA)
The Corporate Transparency Act is a landmark piece of legislation enacted by the U.S. Congress in 2021 to combat financial crimes such as money laundering, terrorism financing, and tax evasion. The CTA requires certain entities to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCen), a bureau of the U.S. Department of the Treasury.
What is the Beneficial Ownership Information Report?
The BOI report is a key component of the CTA. It mandates that covered entities disclose detailed information about their beneficial owners. A beneficial owner is defined as an individual who directly or indirectly exercises substantial control over an entity or owns or controls at least 25% of the ownership interests in the entity.
Why Was the CTA Enacted?
The CTA was enacted to increase corporate sector transparency and close loopholes that allow bad actors to hide their identities behind anonymous shell companies. By requiring entities to report their beneficial ownership information, the CTA aims to:
- Enhance the ability of law enforcement agencies to investigate and prosecute financial crimes.
- Improve the integrity of the U.S. financial system.
- Promote fair competition by ensuring that all businesses operate on a level playing field.
Who Oversees the BOI Reporting?
The Financial Crimes Enforcement Network (FinCen) is the U.S. government agency responsible for overseeing the implementation and enforcement of the BOI reporting requirements. FinCen collects and maintains the beneficial ownership information in a secure database, accessible only to authorized government authorities for law enforcement and regulatory purposes.
Who is Required to File?
Under the Corporate Transparency Act, a wide range of entities are required to file a Beneficial Ownership Information report with FinCen. This includes:
- Limited Liability Companies (LLCs): All domestic and foreign LLCs are required to report their beneficial owners.
- Corporations: Both domestic and foreign corporations must file a BOI report.
- Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs): These entities are also required to disclose their beneficial ownership information.
- Business Trusts and Statutory Trusts: Trusts that are created by a filing with a state office are required to report.
- Other Similar Entities: Any other entity created by a filing with a state office, such as certain types of nonprofit organizations, may also be required to file.
Exemptions
Certain entities are exempt from filing a BOI report. These include:
- Large Operating Companies: Companies with more than 20 full-time employees, over $5 million in gross receipts or sales, and an operating presence at a physical office within the United States.
- Regulated Entities: Entities already subject to substantial federal or state regulation, such as banks, credit unions, and insurance companies.
- Inactive Entities: Entities that have been in existence for over a year, are not engaged in active business, and have no assets.
For a detailed list of exemptions, please refer to the FinCen guidelines. You can also use this Exempt Entity Checker to see if your entity qualifies for an exemption.
Why Choose Our BOI Report Filing Service?
Our BOI Report Filing service is tailored to meet all your BOI reporting needs, ensuring you stay compliant with FinCen regulations. Here’s what you get with each report:
- Filing of the Beneficial Ownership Information Report with FinCen:Â We handle the entire filing process, ensuring your report is submitted accurately and on time.
- Unlimited Chat Support from Our Legal Team:Â Have questions? Our legal team is here to help with unlimited chat support. Need more in-depth assistance? Order an Attorney Consultation for personalized support.
- Pre-filing Review by Our Team:Â Avoid common mistakes with a thorough pre-filing review by our experienced team. We check your report for accuracy and completeness before submission.
- Reminders to Update Your Report:Â Stay compliant with timely reminders to update your BOI report as required by law.
- ID Expiration Tracking: Never miss an update with our ID expiration tracking. We’ll notify you when it’s time to renew your identification documents.
Penalties for Non-Compliance
Failure to comply with the Corporate Transparency Act (CTA) can result in severe penalties. It is crucial to understand the consequences of non-compliance to avoid any legal or financial repercussions.
- Civil Penalties: Non-compliance can lead to significant civil penalties, including fines of up to $500 per day until the required information is submitted.
- Criminal Penalties: Willful failure to report, or providing false or fraudulent information, can result in criminal penalties, including fines up to $10,000 and imprisonment for up to two years.
- Reputational Damage: Non-compliance can also harm your business’s reputation, affecting relationships with clients, partners, and regulatory bodies.
Our service ensures that you stay compliant with all CTA requirements, helping you avoid these penalties and maintain your business’s integrity.
Get Started Now
Don’t let the complexities of BOI reporting overwhelm you. Our expert team is here to ensure your compliance with the CTA, providing peace of mind and freeing you to focus on your business.
BOI Report FAQ
How much does it cost?
FinCen does not charge a filing fee for the Beneficial Ownership Information (BOI) report. However, we charge $400 per entity for our comprehensive filing service. Alternatively, you can join our fractional general counsel membership program and have the filing included at no additional cost.
Is everyone required to file? Who’s exempt?
Not all entities are required to file a BOI report. Certain entities, such as large operating companies, regulated entities, and inactive entities, may be exempt. For a detailed list of exemptions, please refer to the FinCen guidelines. You can also use this Exempt Entity Checker to see if your entity qualifies for an exemption.
Will an attorney review my filing?
An attorney or paralegal from our legal team will review your filing before we submit it to ensure accuracy and compliance with FinCen regulations.
Is it an annual filing?
No, the BOI report is not an annual requirement. However, you are required to update your report if there are any changes to the beneficial ownership information. Our service includes reminders to help you stay compliant with these update requirements.
What information is required for the BOI report?
You will need to provide detailed information about the beneficial owners of your entity, including their full name, date of birth, address, and a unique identifying number from an acceptable identification document (e.g., passport, driver’s license).
How do I know if my information is secure?
We take data security very seriously. We have invested in a market-leading platform to protect your data, and all information submitted through our service is encrypted and stored securely. We comply with all relevant data protection regulations to ensure your information is safe.
What happens if I don’t file the BOI report?
Failure to file the BOI report or update it as required can result in significant penalties, including fines of $500 per day and legal action. It is crucial to comply with the CTA requirements to avoid these consequences.
Can I file the BOI report myself?
Yes, you can file the BOI report yourself through the FinCen website. However, our service provides additional benefits, such as legal review, reminders, and support, to ensure your filing is accurate and compliant.
How do I update my BOI report?
If there are changes to the beneficial ownership information, you must update your BOI report. Our service includes reminders and support to help you make these updates promptly. Simply contact us, and we will guide you through the process.
What is the Corporate Transparency Act (CTA)?
The Corporate Transparency Act (CTA) is a 2021 U.S. federal law that requires certain entities to report information about their beneficial owners to FinCen. The goal of the CTA is to increase transparency and combat financial crimes such as terrorism, money laundering, and tax evasion.
How long does the filing process take?
Generally, it can be done in about 10 minutes if all information is available. The time it takes to complete the filing process can vary depending on the complexity of your entity's ownership structure and the accuracy of the information provided. Our team works efficiently to review and submit your filing as quickly as possible.
Can I get support if I have questions about the filing process?
Absolutely! We offer unlimited chat support from our legal team to assist you with any questions or concerns you may have about the filing process. For more in-depth assistance, you can also purchase a Legal Advice Session.
