Beginning in 2024, FinCEN’s new beneficial ownership reporting requirements will be enforced. While most corporations, LLCs, and limited partnerships will likely need to file a BOI report, certain business structures are exempt.

Determining whether your business qualifies as a “reporting company” can be complex. To help, BOIReporting has compiled key information outlining the types of entities and industries that will likely need to report, as well as the primary exemptions.

Our aim is to provide you with a clearer understanding of whether and how your business may need to comply with these new transparency requirements.

Different Types of Reporting Entities

The rule defines “reporting companies” that must submit BOI reports. Reporting companies include:

Domestic Reporting Companies

The following entities are considered domestic reporting companies:

• Corporations
• Limited liability companies (LLCs)
• Any entities created by filing formation documents with a secretary of state

This includes many entities formed under state law, such as:

• Limited liability partnerships (LLPs)
• Limited partnerships (LPs)
• Limited liability limited partnerships (LLLPs)
• Business trusts

Foreign Reporting Companies

Foreign-formed entities that register to do business in the U.S. by filing documents with a secretary of state are also considered reporting companies, including:

• Foreign corporations
• Foreign LLCs

Exempt Entities

There are 23 types of entities exempt from being considered reporting companies. Some examples include:

• Publicly traded companies
• Financial institutions like banks and credit unions
• Insurance companies
• Non-profits

FinCEN may also exempt other companies it determines do not need to report.

Industries Likely to Need to Report

Most newly formed or registered companies in the following industries will likely qualify as reporting companies:

• Retail: Small to medium-sized retailers like boutiques, restaurants, or specialty stores formed as LLCs or corporations.
• Professional Services: Law firms, accounting practices, consulting firms, and other service businesses organized as corporations or LLCs.
• Real Estate: Newly formed real estate development, management, and investment companies.
• Construction: General contractors, subcontractors, and specialty trade contractors organized as LPs or LLCs.
• Technology: Early-stage startups and app developers formed as LLCs or C-corps.
• Wholesale Trade: Distributors, importers, and exporters formed as LPs, corporations, or LLCs.

Need Help Filing a BOI Report for Your Business?

Managing your business is time-consuming enough without learning new regulations. Mistakes in filing can cost you valuable time and resources. If your business is required to file a BOI report, it’s crucial to get it right.

Luckily, you don’t need to hire an expensive specialist. BOIReporting offers a streamlined process for gathering entity ownership information and supporting documentation. Our BOI filing platform sets the industry standard, making it quick and easy to file BOI reports with minimal effort. For efficient, cost-effective filing, choose BOIReporting.