New Reporting Requirements for Entities

Effective January 1, 2024, all corporate entities must file a Beneficial Ownership Information (BOI) Report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) unless an exception applies to the entity. This reporting requirement is part of the Corporate Transparency Act passed by Congress in 2021. The purpose of the BOI Report is to make it harder for individuals to hide behind shell companies or other companies hiding their true identity.

The BOI Report identifies the beneficial owners and company applicants of the entity. A beneficial owner is someone who owns 25% or more of the entity or has substantial control over the entity (ex: CEO, CFO, etc). There are 23 different types of entities that are not required to submit a BOI Report. Those not required to report include a bank, credit union, investment company, insurance company, accounting firm, or an inactive entity among others. Minors, agents, employees, inheritors, and creditors of the entity are exempt from filing as beneficial owners.

A company applicant is someone who filed the document creating the entity and/or a person who is primarily responsible for directing or controlling the filing of the document creating the entity. The company applicant’s information is only required if the entity was created on or after January 1, 2024. Company applicants can only be individuals, not entities, and an entity cannot have more than two company applicants.

What do beneficial owners and company applicants (if applicable) need to provide?

1. Individual’s legal name
2. Individual’s date of birth
3. Individual’s residential address
4. A copy of one of the following identifying documents:
   1. State-issued driver’s license
   2. State/local/tribe-issued ID
   3. S. passport
   4. Foreign passport
5. The identifying document number
6. The identifying document issuing jurisdiction

Beneficial owners and company applicants will need to supply a copy of their government-issued ID to submit to FinCEN.

FinCEN also has the option of entering a FinCEN ID rather than entering all of the information listed in 1-6 above for each entity they are the beneficial owner or company applicant of. The FinCEN ID is created in FinCEN’s website. The individual would provide the same information listed in 1-6 above and FinCEN generates an ID. This would make the reporting process easier for individuals who are the beneficial owner of multiple entities and/or was the company applicant for multiple entities. Once the ID number is generated, the beneficial owner only needs to enter the ID number into the report.

Important deadlines

Companies created or registered before January 1, 2024 have until January 1, 2025 to file the BOI Report with FinCEN.

Companies created or registered on or after January 1, 2024 and before January 1, 2025 have 90 days after receiving notice of the company’s creation or registration to file the BOI Report with FinCEN.

Companies created or registered after January 1, 2025 have 30 days from actual or public notice of creation or registration to file the BOI Report with FinCEN.

Those who fail to file or provide false information can face up to 2 years in prison and/or be fined up to $10,000.

You can download a copy of the form and submit it online or fill out the online form at https://boiefiling.fincen.gov/fileboir.

Should you need any assistance with the BOI Report form give us a call at 727-384-5999.

6677 13th Avenue North

Suite 3A

St Petersburg, FL 33710

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Phone: 727-384-5999

Fax: 727-384-5979

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