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UNDERSTANDING A FinCEN’S BENEFICIAL OWNERSHIP INFORMATION(BOI) REPORT

As per the Corporate Transparency Act, FINCEN mandates that businesses file a Beneficial Ownership Information Report to avoid criminal and civil penalties.<br><br>

Jennifer230
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UNDERSTANDING A FinCEN’S BENEFICIAL OWNERSHIP INFORMATION(BOI) REPORT

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  1. UNDERSTANDING A FinCEN’S BENEFICIAL OWNERSHIP INFORMATION(BOI) REPORT

  2. TABLE OF CONTENTS • What is BOI Reporting? • Who is required to file BOI? • Which entities are exempt from submitting BOI reports? • Who is the beneficial owner(s) of the company? • What information is required in the beneficial ownership information (BOI) report? • Who is a company applicant for a company? • BOI filing deadlines • Are there any penalties for not reporting BOI report? • How to file BOI report with TaxBandits?

  3. What is BOI Reporting? • The BOI Report, which stands for Beneficial Ownership Information Report or BOIR, provides information about the business's ownership structure. • This report encloses the details like beneficial owner details, company applicant details and reporting company information.

  4. Who is required to file BOI? • The following types of companies are required to file BOI Report: • Domestic companies • Companies are formed or registered by filing papers with US. • Foreign companies • Companies are set up outside the US and filing papers within the US

  5. Which entities are exempt from submitting BOI Reports? • FinCEN recognizes, there are 23 types of entities are exempt from the BOI Reports. • Some of the types are listed below: • Securities reporting issuer • Bank • Governmental authority • Credit Union and more. • For detailed information about the exemptions check out: https://www.taxbandits.com/boi-exemptions/

  6. Who is the beneficial owner(s) of the company? • A beneficial owner is an any individual or an entity who either directly or indirectly has: • Substianal Control over reporting company (or) • Own or Control 25% of the reporting company’s ownership interest.

  7. What Information is Required in the Beneficial Ownership Information (BOI) Report? • The company needed to provide the following details: • Type of BOI filing as initial filing, updation, correction. • Beneficial owner details like name, address, and Date of birth. • Reporting company information like name of the company, address of the company, type of company, and tax number for the company. • Information for Newly registered companies which includes name and creation date of the company, address, and Unique identification number.

  8. Who is a company applicant for a company? • The company applicant is an individual or an entity responsible for filing the papers to create or register the company with the state jurisdiction, Indian tribes,or the US jurisdiction. • The companies are formed or registered on or after January 1, 2024, it is required to report its company applicant to FinCEN. • The company can have either a single or a maximum of Two applicant.

  9. BOI filing deadlines? • The deadline to report the BOI report is based on the establishment of your company. • Companies are established or registered before January 1, 2024, submit the report by January 1, 2025 • Companies are established or registered on or after January 1, 2024, submit the BOI report within 90 days from the date of registration • Companies that are established or registered after January 1, 2025, submit the report within 30 days from the date of registration. • Companies must file the updated BOI report within 30 days from the occurrence of any changes or updates of company information or beneficial owners. Find your Due Date using the Initial BOI Report Due Date Calculator

  10. Are there any Penalties for not reporting BOI report? • Yes, failing to file a BOI report with FinCEN causes in penalties. Penalties may be included : • Willful failure to submit a report • Providing false information • Unauthorized disclosure of information • Penalties for civil fines up to $500 per day • Penalties for criminal fines up to $10000 or upto imprisonment for two years.

  11. How to File BOI report with TaxBandits? • TaxBandits offers a streamlined and simplified solution for BOI reporting. • Using TaxBandits, filing a report requires minimal steps which include: • Select the type of Report • Enter the required details for the reporting company • Add beneficial owners and company applicant details • Review and submit BOI report to FinCEN.

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