The Beneficial Ownership Information (BOI) Report is a new filing requirement introduced by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) as part of the Corporate Transparency Act (CTA).
When it’s time to submit a BOI report, BOIReporting can help ensure your business meets the latest reporting requirements.
What’s the Connection Between the Corporate Transparency Act and BOI Reports?
The Corporate Transparency Act (CTA) is designed to combat money laundering and financial crimes. Congress enacted this law to curb illicit activities such as money laundering and terrorism financing.
Under the CTA, businesses established before 2024 that meet certain criteria are now considered "reporting companies" and must file a BOI report by January 1, 2025.
Additionally, reporting companies formed in 2024 are required to submit their BOI report within 90 days of their formation date, when they register with the Secretary of State.
Which Companies Need to File a BOI Report?
Both established and newly-founded businesses in industries such as:
- Retail
- Professional Services
- Real Estate
- Healthcare
- Construction
- Technology
- Wholesale Trade
- Hospitality
are likely considered reporting companies and required to submit a BOI report. However, certain exemptions apply. A company is exempt from filing a BOI report if it meets the following criteria:
- Employs over 20 full-time employees
- Maintains a physical office in the United States
- Filed federal taxes in the most recent year with over $5 million in gross sales
Additionally, other highly regulated industries are also exempt from BOI filing under the Corporate Transparency Act.