I’m receiving questions almost every other day about this due to videos being circulated on social media, but BOI (Beneficial Owner Information) reporting kicks off on 1/1/24.
This is a new filing required through FinCEN (Financial Crimes Enforcement Network) and is required by a large portion of businesses to help curb bad-actors who use shell-companies to hide and launder money.
So, what exactly is beneficial ownership information? Essentially, it's the identifying details of the individuals who truly control an entity, be it a company, a trust, or even a bank account. These individuals may not be on the official paperwork, but they pull the strings, make the decisions, and ultimately enjoy the profits.
The filing will be asking for detailed information about the business and owning individuals or entities (name, address, social security numbers, valid ID) and will require updates (within 30 days) as ownership or information about the business changes.
One recent adjustment for 2024 is that new businesses formed will have 90 days to submit their initial filing (as opposed to the previous deadline of 30 days)
For businesses ALREADY in existence, the first filing will be due by 1/1/25.
If you’d like more information, FinCEN has put out an extensive guide for small businesses to assist with filing compliance.
