The Corporate Transparency Act requires certain businesses to disclose information about their beneficial owners to increase transparency and combat financial crimes. Are you required to file a BOI report?
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Free BOI Eligibility Quiz
Wondering if you need to file a BOI report? Rockerbox offers a free, easy-to-use Beneficial Ownership Information Reporting Eligibility Quiz. This quick quiz helps you determine whether your business is legally required to file a BOI report.
Watch our short video and see how Rockerbox can help small business owners determine if they need to file a BOI report with the Financial Crimes Enforcement Network, commonly known as FinCEN.
What is the Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) Reporting?
Passed in 2021, the Corporate Transparency Act cracks down on illicit activity by demanding greater transparency from certain US businesses. By requiring detailed ownership information, it makes it harder for criminals to mask their tracks and exploit the financial system for tax evasion, money laundering, and terrorism financing.
Who Must Comply With BOI Reporting?
Any company formed by filing documents with a state or tribal office, like corporations and LLCs, must report their beneficial owners unless they fall under specific exemptions. According to FINCEN over 90% of all businesses must comply.
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When Does The New Law Take Effect?
Companies formed before January 1, 2024, have until January 1, 2025, to file their initial BOI report with FinCEN. New companies formed after that date must file within 90 days of creation or registration.
What About Penalties?
The penalties are steep. Willful violations could result in civil penalties and/or criminal penalties. Potential civil penalties include fines of $500 per day, up to $10,000, while criminal penalties could include imprisonment of up to two years.
BOI Reporting FAQs
How will companies become aware of the BOI reporting requirements?
FinCEN has created a BOI outreach campaign to support reporting companies. Engagement with government offices and industry groups further strengthens clarity. For straightforward information regarding BOI, contact us today to learn more.
Why do companies have to report beneficial ownership information to the U.S. Department of the Treasury?
To combat financial crime and hidden ownership, Congress in 2021 passed the bipartisan Corporate Transparency Act, requiring reporting of beneficial owners behind companies.
Under the CTA, who can access beneficial ownership information?
FinCEN’s secure database houses beneficial ownership information, accessible only to authorized officials for specific purposes like national security, intelligence, and law enforcement. Financial institutions may also access the information with company consent or under regulatory supervision. Rigorous security protocols protect this sensitive data, and FinCEN collaborates with authorized users to ensure its proper handling and confidentiality.
Should my company report beneficial ownership information now?
- Existing companies (before 2024): File your BOI report by January 1, 2025.
- Companies formed in 2024: File within 90 days of receiving notice.
- New companies (after 2024): File within 30 days of receiving notice.
Can a company created or registered in a U.S. territory be considered a reporting company?
Companies formed or registered to do business in any US territory, including Puerto Rico, Guam, and the Virgin Islands, must report beneficial ownership information to FinCEN, just like companies in the 50 states and DC.
Your journey starts here
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Take the first step toward BOI reporting and gaining peace of mind. Our team of specialists will review your business, identify if you are required to file a BOI report, and get you started on the right path.