Beneficial Ownership Information (BOI) Report

Beneficial Ownership Information (BOI) Reporting Explained

Beneficial Ownership Information (BOI) reporting is a vital regulatory requirement designed to increase transparency and accountability in business ownership. BOI reporting involves disclosing key details about the individuals who own or control a significant portion of a company. These individuals, known as beneficial owners, may directly or indirectly influence company decisions and enjoy financial benefits.

BOI reporting plays a critical role in preventing illegal activities such as money laundering, tax evasion, and other forms of financial crime. By identifying who is behind corporate entities, government authorities can ensure compliance and foster a transparent business environment.

Key Elements of BOI Reporting:

• Beneficial Owner Identification: Companies must report the identity of all beneficial owners, including full name, address, date of birth, and social security or other identification numbers.

• Ownership Thresholds: Individuals with a significant percentage of ownership (often 25% or more) or significant control over company decisions are considered beneficial owners.

• Compliance Obligations: Companies are required to file BOI reports with government agencies and ensure the information remains accurate and up-to-date.

Non-compliance with BOI reporting regulations can result in hefty fines and penalties, making it crucial for companies to understand their obligations. To help you navigate these regulations, we’ve created a comprehensive guide on BOI reporting.

Why BOI Reporting Matters

BOI reporting isn’t just a regulatory task—it’s a requirement you have to comply with. Failure to comply with BOI reporting can result in serious penalties. These include civil penalties of $500 per day with no maximum limit, as well as criminal penalties with fines up to $10,000 and/or imprisonment for up to 2 years. Staying compliant not only protects your business from these severe consequences, but also helps build trust with clients, partners, and investors by ensuring transparency and credibility.

Download Our BOI Reporting Guide

For a deeper explanation on how to comply with BOI reporting requirements, download our free BOI Reporting Guide. This guide provides detailed i examples to help you stay compliant and avoid penalties.