a BOI form?

A BOI form, or Beneficial Ownership Information form, is a document related to the reporting requirements under the Corporate Transparency Act (CTA) in the United States. It is a mechanism for providing information about the individuals who own or control a business entity, such as an LLC, to the Financial Crimes Enforcement Network (FinCEN).

Why Your LLC Might Need a BOI Form

The Corporate Transparency Act, which went into effect in 2024, requires many companies, including LLCs, to disclose beneficial ownership information. This is part of an effort to combat money laundering, fraud, and other illicit financial activities by increasing corporate transparency.

Key Points About the BOI Form:

1. Who Needs to File?

   • Most LLCs, corporations, and other entities formed in the U.S. or registered to do business in the U.S. are required to file unless they qualify for an exemption.

   • Exemptions apply to entities like large operating companies (those with more than 20 employees, $5 million in revenue, and a physical office in the U.S.) and certain regulated organizations (e.g., banks or public companies).

2. What Information is Required?

   • Details about the reporting company, including legal name, trade name, address, and EIN (Employer Identification Number).

   • Information about each beneficial owner, including:

     • Full name.

     • Date of birth.

     • Address.

     • Government-issued ID (e.g., passport or driver’s license).

3. Who is a Beneficial Owner? A person who directly or indirectly:

   • Owns at least 25% of the company, or

   • Exercises substantial control over the company.

4. Filing Deadlines:

   • For entities formed on or after January 1, 2024, the BOI form must be filed within 30 days of formation.

   • For existing entities, the initial deadline is January 1, 2025.

5. Penalties for Non-Compliance: Failure to file or providing false information can result in civil and criminal penalties, including fines of up to $10,000 and/or imprisonment.

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Why It's Important

Filing the BOI form is a legal requirement for most LLCs and ensures compliance with federal law. It also helps authorities prevent financial crimes and enhances transparency in the corporate world.

If your LLC needs to file, it's advisable to consult with a legal or financial professional to ensure you meet all requirements.