Beneficial Ownership InformationReporting

Welcome to our video on the new beneficial ownership information reporting requirements for companies operating in the United States. Starting in 2024, most companies doing business in the U.S. will be required to report their beneficial ownership information, or BOI. A beneficial owner is an individual who owns or controls an interest in an entity, whether directly or indirectly. This can include people who hold shares, have voting power, or exert influence through indirect ownership, such as through another entity or a trust.

Which companies must report their beneficial ownership information? Most small and medium-sized enterprises, or SMEs, will need to report their BOI. However, there are exceptions for businesses already subject to other reporting requirements. These include publicly traded companies, financial institutions, insurance companies, and more. While most SMEs will be required to report, it's important to verify whether these rules apply to your business based on your specific circumstances.

When is reporting required? Beginning in 2025, new businesses must report their BOI within 30 days of their formation or registration. If there is a change in a business's ownership or control, it must be reported within 30 days as well. For businesses that existed prior to 2024, the deadline to report BOI is January 1, 2025.

What information must be reported? A BOI report requires basic information from the company and beneficial owners. For a company, it requires the name, address, state of formation, and IRS taxpayer identification number. For a beneficial owner, it requires their legal name, date of birth, residential address, and an ID number from an acceptable document such as a U.S. passport or state-issued ID. If unavailable, a foreign passport is acceptable. Alternatively, beneficial owners can request a FinCEN unique identification number if preferred. Does my business need to report BOI to the state as well? No. BOI reporting is only required at the federal level. You do not need to submit separate reports to state regulators. Is there anything else I should know? Noncompliance with BOI reporting requirements can lead to severe penalties, including fines of over $500 per day. It's important to meet all deadlines and ensure your information is accurate. Consider consulting experts well before the deadline to avoid any issues. Where do I start? Look no further. Orbiss is here to help. Whether you have questions about beneficial ownership, federal reporting, or other compliance matters, you can count on our team's expertise. Visit our website to schedule a meeting and get started today.