Beneficial Ownership Information Report

BEGIN YOUR JOURNEY

Begin your journey towards compliance by initiating your required Beneficial Ownership Information Report with The Private Firm. Our streamlined process ensures accuracy and efficiency, guiding you through the necessary steps with ease. Don’t delay – take the first step towards fulfilling your obligations today with The Private Firm.

In compliance with the Corporate Transparency Act, businesses are now mandated to file a Beneficial Ownership Information Report to evade potential criminal and civil penalties.

Our streamlined service ensures your filing process is hassle-free and fully compliant. For just $39, we’ll guide you through the process, ensuring accuracy and peace of mind. Stay ahead of regulatory requirements and secure your business’s future – let us assist you today.

Choose The Private Firm to file your Beneficial Ownership Information Report

Get
compliant

Ensure compliance with the Corporate Transparency Act effortlessly with our assistance. Our team will handle the filing process, submitting the necessary information about the individuals who own or control your business directly to the Financial Crimes Enforcement Network (FinCEN). Stay ahead of regulatory requirements and streamline your compliance efforts with our expert support.

Make things
easier

Streamline your compliance process and save valuable time navigating the intricacies of new federal legislation with our swift and straightforward report filing service. Our expert team will handle the details to ensure your filing is in full compliance with the Corporate Transparency Act, leaving you free to focus on your core business activities. Say goodbye to the stress of deciphering complex regulations – trust us to deliver efficient and accurate filing solutions tailored to your needs.

File with
confidence

Gain peace of mind with our precise and compliant filing services. Rest assured that our filings will include all necessary information mandated by FinCEN and the latest regulations. Additionally, upon completion of the report, you’ll promptly receive confirmation, ensuring transparency and confidence in the process. Trust us to handle your filings accurately and efficiently, allowing you to focus on your core business activities with peace of mind.

An affordalbe plan to meet
your compliance needs

Beneficial Ownership
Information Report (BOIR)

Get your BOIR filed by us. We’ll send your info to FinCEN so you comply with the new rule under the Corporate Transparency Act.

$39

Per Month

Beneficial Ownership
Information Report includes:

Customized federally required report.
Simplified process to help you file accurately with the government.
Confirmation of successful submission to the Financial Crimes Enforcement Network (FinCEN).

What is Beneficial Ownership Information Reporting?

Under the Corporate Transparency Act, it is mandatory to submit identifying details regarding individuals who have direct or indirect ownership or control of your company to the Financial Crimes Enforcement Network. The implementation of the Beneficial Ownership Information Reporting Rule commences on January 1, 2024. It is crucial to grasp the implications of this legislation due to the significant consequences, such as criminal charges and substantial fines, for non-compliance. Understanding and adhering to this new law is paramount to avoid potential legal ramifications.

How to complete the Beneficial Ownership Information Report in 3 easy steps.

Ensuring accurate reporting of ownership and control information for your business is paramount to sidestepping potentially severe civil and criminal penalties. Our assistance provides a streamlined solution to help you meet these requirements with precision and ease. By leveraging our expertise, you can navigate the complexities of compliance effortlessly, safeguarding your business from legal risks and ensuring transparency in your operations. With our support, you can confidently fulfill your obligations, mitigating the threat of penalties while upholding the integrity of your business practices.

Tell us about your beneficial owners

To ensure accuracy and personalization in your report, it’s essential to gather information about the individuals who own or control your business. By answering a few simple questions about their identities, roles, and responsibilities within the organization, we can tailor the report to reflect the specific context and dynamics of your business environment.

We create and file the report for you

We understand the importance of compliance with beneficial ownership information reporting requirements, and we’re here to streamline the process for you. Our team will craft a personalized report tailored to your specific needs, ensuring that all necessary information is accurately documented and organized.

Receive confirmation of your filed report

Once your personalized report is submitted to the Financial Crimes Enforcement Network (FinCEN), we will promptly furnish confirmation of its filing.

Why get help with the Beneficial Ownership Information Report?

Avoid serious penalties

To avoid facing severe consequences, it’s imperative to adhere to the law and regulations governing society. Failure to comply can result in significant penalties, both criminal and civil in nature.

Focus on what matters

Focusing on your business’s core operations is crucial, especially amidst the introduction of new federally mandated regulations like the Corporate Transparency Act.

Enjoy peace
of mind

Feeling confident and secure in your business ventures is essential, especially when it comes to navigating regulatory requirements like those set forth by the Financial Crimes Enforcement Network (FinCEN).

What is the Beneficial Ownership Information Reporting Rule?

The Beneficial Ownership Information Reporting Rule, mandated by the Corporate Transparency Act, marks a significant step in bolstering financial integrity and combating illicit activities in the United States. Implemented by the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury, this rule mandates greater transparency regarding company ownership structures.

By requiring companies to disclose beneficial ownership information, the rule aims to thwart a spectrum of financial crimes and fraudulent activities, including money laundering, corruption, human trafficking, drug trafficking, tax fraud, and various forms of fraud against individuals and businesses. This initiative aligns with the government’s steadfast commitment to uncovering and deterring corporate entities that seek to conceal or profit from activities detrimental to society. Through enhanced reporting mechanisms, the rule empowers regulatory authorities to identify and mitigate risks, thereby promoting a more robust and accountable business environment.

Who is a beneficial owner?

A beneficial owner, as defined by the Corporate Transparency Act, encompasses individuals who wield significant influence or ownership within a company. This includes those who directly or indirectly possess a minimum of 25% of the company’s ownership interests or exert substantial control over its operations. Examples of individuals falling under this definition of substantial control might include key decision-makers such as CEOs, majority shareholders, or those with authority over financial matters.

Additionally, individuals who hold significant managerial roles or possess the ability to influence corporate policies and direction may also be considered beneficial owners under the act.

  • An important decision-maker for the reporting company
  • A senior officer (president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any other officer with a similar function)
  • An individual with the authority to appoint or remove certain officers or a majority of directors (or similar body) of the company

What are the penalties
for not filing?

It’s crucial for every business to adhere to the requirement of filing a Beneficial Ownership Information Report, which outlines all individuals who control or own the business. Failure to comply with these reporting obligations under the Corporate Transparency Act can result in severe consequences for beneficial owners. Those who intentionally evade or mislead the Financial Crimes Enforcement Network face both criminal and civil liabilities.

Criminal penalties may include imprisonment for up to two years and/or fines of up to $10,000, while civil penalties can amount to $500 per day. Even if the report is submitted on time, inaccuracies can still incur penalties. Therefore, it’s paramount for reporting companies to ensure the accuracy of their filings. Our simplified reporting and filing process can assist in meeting these legal requirements effectively and avoiding potential repercussions.

When is the Beneficial Ownership Information Report deadline?

As of January 1, 2024, the Beneficial Ownership Information Reporting Rule is in full effect, making it imperative to understand and fulfill the necessary obligations promptly. The deadline for compliance varies based on the formation date of your business entity, a detail we can assist you in determining. Our services include proactive notifications to ensure you remain informed and on schedule for your filing deadline.

For businesses established before January 1, 2024, the deadline for filing extends until December 31, 2024. Conversely, entities formed on or after January 1, 2024, are granted a 90-day window from their formation date to submit their reports. Additionally, entities that modify their formation documents after January 1, 2024, are required to file within 30 days of the amendment.

Prioritizing this obligation is crucial to evade potential legal repercussions, which encompass both criminal and civil penalties for non-compliance. These penalties may include imprisonment for up to two years, fines reaching $10,000, and daily fines up to $500. By adhering to these reporting requirements, you safeguard your business from adverse consequences while demonstrating a commitment to regulatory compliance.

How do I get a Beneficial Ownership Information Report?

With our Beneficial Ownership Information Report service, you’ll receive timely notifications for filing your report. We’ll handle the entire process efficiently: gathering necessary information, crafting an accurate report detailing the individuals who own or control your business, thus fulfilling the beneficial ownership information reporting obligation. Once compiled, we’ll promptly submit the report to the Financial Crimes Enforcement Network (FinCEN) on your behalf. Rest assured, we’ll confirm successful completion, providing you with the peace of mind that your compliance requirement has been met seamlessly.

What is in the Beneficial Ownership Information Report?

The Beneficial Ownership Information Report is a comprehensive document containing vital details about the reporting company, including its full legal name, any trade or DBA names, address, federal tax ID number (or EIN), and the jurisdiction of creation. Furthermore, it encompasses detailed information about the beneficial owners, such as their full legal names, birth dates, current addresses, and images of acceptable identification documents, along with issuing jurisdiction and document ID number.

In cases where the applicant differs from the beneficial owners, the applicant must also furnish identical information. Our service streamlines this process, simplifying the reporting and filing of required information with the Financial Crimes Enforcement Network. This not only saves valuable time but also alleviates the stress associated with meeting deadlines and ensuring accurate submission of your report.

How are LLCs impacted by the Beneficial Ownership Information Reporting Rule?

Owners of a limited liability company (LLC) are required to file a new report with the federal agency, providing essential contact information about the company and its owners, known as members. This obligation extends to both single-member and multi-member LLCs, ensuring transparency and compliance with regulatory standards. By furnishing accurate details, LLC owners contribute to maintaining the integrity and accountability of their businesses within the legal framework. This filing serves as a vital administrative task, facilitating communication and regulatory adherence while upholding the principles of corporate governance.

Who is exempt from Beneficial Ownership Information Reporting?

Most small business entities are not exempt from this requirement. Entities that are exempt from beneficial ownership information reporting include publicly traded companies, tax-exempt nonprofit organizations, certain large operating companies, and others that meet specific requirements. The Financial Crimes Enforcement Network lists 23 types of exempt entities that do not qualify as reporting companies and certain individuals that can’t be listed as a beneficial owner under the reporting requirement.

Frequently asked questions

The Beneficial Ownership Information Report is a vital document mandated for every business entity registered with the Secretary of State. It serves to disclose pertinent details regarding the individuals who own or exert control over a business entity. This report is submitted to the Financial Crimes Enforcement Network, ensuring compliance with legal obligations outlined in the Corporate Transparency Act. By providing transparency into the ownership structure of businesses, this report aids in the prevention of financial crimes and promotes greater accountability within the corporate sector.

With The Private Firm, you’ll experience seamless compliance management. We’ll keep you informed, ensuring timely filing of your report tailored to your business and formation date. Our meticulous approach guarantees an accurate report, detailing the ownership and control structure of your business.

Once prepared, we swiftly submit it to the Financial Crimes Enforcement Network, sparing you the hassle. Rest assured, with our services, compliance becomes effortless, offering you peace of mind knowing your obligations are met with precision and efficiency.

A beneficial owner refers to an individual who holds a significant stake in a company, either through direct ownership of at least 25% of the company’s shares or through indirect control. This can also extend to individuals who exert substantial influence or control over the business operations.

If there’s uncertainty regarding the identification of beneficial owners within your company, seeking legal counsel from our network of attorneys can provide clarity and ensure compliance with relevant regulations.

Examples of beneficial ownership and beneficial owners with substantial control include:

  • An important decision-maker for the reporting company
  • A senior officer (president, chief executive officer, chief financial officer, general counsel, chief operating officer, or any other officer with a similar function)
  • An individual with the authority to appoint or remove officers or directors (or similar body) of the company

The Beneficial Ownership Information Reporting Rule, established under the Corporate Transparency Act, stands as a pivotal measure in ensuring transparency within legal entities. This mandate requires the disclosure of individuals who ultimately benefit from such entities, aiming to unveil the often obscured ownership structures.

By shedding light on these beneficiaries, the rule equips the federal government with crucial tools to combat a spectrum of financial crimes and fraudulent activities. From the insidious realms of money laundering, corruption, and human trafficking, to more common offenses like tax fraud and fraud against stakeholders, this regulation serves as a barrier against illicit activities that undermine the integrity of financial systems and harm communities.

By enforcing accountability and transparency, the rule not only safeguards against exploitation but also fortifies the foundations of trust and integrity within the business landscape.

As of January 1, 2024, compliance with beneficial ownership information reporting has become mandatory under the Corporate Transparency Act. This legislation aligns with the U.S. government’s continued dedication to combating illicit activities by ensuring transparency regarding who truly benefits from corporate entities. By mandating the disclosure of beneficial ownership information, the government aims to deter individuals or entities from engaging in activities that could harm others while hiding behind the veil of corporate structures.

This measure underscores the importance of accountability and transparency in fostering a more equitable and secure business environment, ultimately serving the interests of both society and the economy.

 
 
 
 

In compliance with regulatory standards, a beneficial owner is mandated to furnish essential details including their legal name, date of birth, residential address, percentage of ownership, and a verifiable image of an approved identification document.

This identification document could be a passport or a driver’s license, and must include pertinent information such as the issuing jurisdiction and the document’s unique identification number. Such thorough documentation ensures transparency and accountability in financial transactions, facilitating due diligence processes and safeguarding against illicit activities such as money laundering and fraud.

The Financial Crimes Enforcement Network (FinCEN) provides a detailed list of 23 exempt business entities that fall outside the scope of reporting requirements as defined by the agency. These exemptions delineate specific categories of businesses that are not obligated to comply with reporting regulations typically imposed on other entities.

Such exemptions serve to streamline regulatory burden and ensure that reporting obligations are appropriately tailored to the nature and scale of business activities. By delineating these exempt categories, FinCEN aims to promote regulatory efficiency while still maintaining effective oversight of financial transactions and mitigating the risk of financial crimes.

  • Securities reporting issuer
  • Governmental authority
  • Bank
  • Credit union
  • Depository institution holding company
  • Money services business
  • Broker or dealer in securities
  • Securities exchange or clearing agency
  • Other Exchange Act registered entity
  • Investment company or investment adviser
  • Venture capital fund adviser
  • Insurance company
  • State-licensed insurance producer
  • Commodity Exchange Act registered entity
  • Accounting firm
  • Public utility
  • Financial market utility
  • Pooled investment vehicle
  • Tax-exempt entities
  • Entity assisting a tax-exempt entity
  • Large operating company
  • Subsidiary of certain exempt entities
  • Inactive entity

Companies may qualify as tax-exempt entities if they satisfy any of the following criteria: they are organized and operated exclusively for charitable, religious, educational, scientific, literary, or other similar purposes; they do not distribute any profits to individuals or shareholders; they do not engage in substantial lobbying activities; they do not participate in political campaigns on behalf of any candidates for public office; or they meet other specific requirements outlined by tax laws and regulations.

By fulfilling these criteria, organizations can obtain tax-exempt status, allowing them to focus on fulfilling their mission and serving their communities without the burden of certain tax obligations.

  • The IRS considers them exempt entities under section 501(c) of the Internal Revenue Code (this will include many entities with nonprofit organization status).
  • They lost tax-exempt status under the code less than 180 days prior.
  • They are political organizations as defined under section 527(a) of the code.
  • They are trusts as defined under section 4947(a) of the code.

A large operating company, according to the agency’s definition, must satisfy a set of specific criteria. These criteria typically encompass various aspects of the company’s size, scope, and operations. This may include factors such as annual revenue exceeding a certain threshold, a significant number of employees, widespread geographic presence or market reach, substantial assets or market capitalization, and a diverse portfolio of products or services. Additionally, the definition may take into account the company’s industry sector and its position within the market relative to competitors. By meeting all of these criteria, a company is classified as a large operating entity, signifying its substantial impact and influence within its respective market or industry.

  • It is otherwise subject to a federal regulatory regime.
  • It has over 20 people with full-time employment status in the U.S.
  • It has more than $5 million in gross receipts or sales on a prior year’s tax return filed with the IRS, excluding foreign receipts.
  • It has a physical operating presence in the U.S.
  • It is owned by an entity already exempt under the Corporate Transparency Act.
  • It is otherwise designated as exempt by the Secretary of the Treasury and the U.S. Attorney General.

According to the Financial Crimes Enforcement Network, an inactive entity is characterized by meeting specific criteria. Firstly, it must not engage in any business operations or generate revenue during the reporting period. Additionally, it should have no employees, shareholders, or principals who are actively involved in managing its affairs. Moreover, an inactive entity must not have any assets apart from a nominal amount necessary to cover its administrative expenses. Finally, it should not hold any investments or conduct financial transactions during the designated period. In summary, to be classified as inactive and exempt from reporting requirements, a company must meet all these criteria outlined by the Financial Crimes Enforcement Network.

  • It was created before Jan. 1, 2020.
  • It is not engaged in active business.
  • It is not owned by a foreign person, resident, domestic partnership, corporation, or other estate or trust.
  • It has not sent or received over $1,000 while transacting business in the last year.
  • It has no assets, including ownership of other companies, in the U.S. or elsewhere.

The Corporate Transparency Act carves out exemptions for specific individuals from falling under the definition of beneficial owners. These exemptions are crucial for ensuring clarity and fairness within the regulatory framework. Among those excluded are individuals who solely serve in an employee capacity, holding no substantial ownership interests in the company. Additionally, certain professionals, such as attorneys, accountants, and other intermediaries, acting in their professional capacity or providing services to the company, may not be considered beneficial owners under certain circumstances. These exemptions aim to strike a balance between transparency and privacy, acknowledging the diverse roles individuals play within corporate structures while still upholding the integrity of beneficial ownership reporting requirements.

  • Minors
  • Individuals acting as nominees, intermediaries, custodians, or agents on behalf of someone else
  • Employees who are not senior officers and whose only interest or control is derived solely from their employment status
  • Individuals whose only interest in a reporting company is derived solely from the right of inheritance
  • Contingent trust beneficiaries
  • Creditors whose only interest is to recover business debts

The implementation of the Corporate Transparency Act mandates that corporations and limited liability companies (LLCs) divulge identifying details regarding individuals who possess ownership or control over a business to the Financial Crimes Enforcement Network. This measure aims to bolster transparency and accountability within corporate structures, combating illicit financial activities such as money laundering and fraud. While most business entities are subject to this new requirement, certain exceptions may apply depending on specific circumstances. By enforcing greater scrutiny and disclosure, the legislation seeks to fortify the integrity of business practices and safeguard against potential exploitation of corporate entities for criminal endeavors.

The Corporate Transparency Act introduces significant shifts in the reporting obligations concerning beneficial ownership details of businesses within the United States. It mandates businesses to disclose and register individuals holding a substantial stake of 25% or more in ownership or exerting considerable control over the company.

Under this legislation, most reporting entities are required to submit comprehensive information regarding each beneficial owner to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN, in turn, administers a database housing the disclosed information on beneficial ownership provided by reporting companies, thus facilitating greater transparency and accountability within the corporate landscape.

In the realm of limited liability companies (LLCs), whether they consist of a single member or multiple members, each participant, known as a member or owner, typically falls under the umbrella of beneficial owners as defined by the rule. Consequently, they are mandated to comply with the new reporting regulations, necessitating the submission of a Beneficial Ownership Information Report to the appropriate federal agency.

This report serves to furnish essential details regarding the company and its owners, encompassing basic contact information and pertinent identifiers. Given the inclusive nature of the requirement, it extends to both single-member and multi-member LLCs alike, underscoring the importance of accurately identifying and disclosing all beneficial owners within the framework of the filing process.

 
 
 
 

Changes to the ownership or controlling members of a business necessitate the updating of beneficial ownership information reporting. This requirement applies in various scenarios, such as when a controlling member transitions from being a minor to reaching the age of majority or when a company achieves tax-exempt status.

Furthermore, updates are mandated if there are inaccuracies in the initially reported information or if entities amend their formation documents. Businesses are allotted a 30-day window from the date of the change or amendment to file an updated Beneficial Ownership Information Report, ensuring transparency and compliance with regulatory standards.

Ensuring compliance within your business is paramount for preserving its reputation and safeguarding against severe consequences such as penalties, fines, and legal repercussions. Compliance Filings offers a comprehensive solution to meet the latest regulatory demands, including the imperative new beneficial ownership information reporting requirement, along with other essential compliance filing obligations. By entrusting Compliance Filings, you not only fulfill your legal responsibilities but also mitigate the risk of non-compliance, thereby safeguarding the integrity and longevity of your business operations.

  • Annual reports: Guided setup and completion of official filings that keep your business’ information—including its name, address, managers, and other details—updated with the state. Filing requirements vary by state.
  • Personalized alerts: Alerts notifying you of your specific filing requirements and due dates, simplifying business compliance.
  • Amendments: File up to two official changes about your business each year with the Secretary of State, such as a new name, address, or ownership.
  • Updated Beneficial Ownership Information Reports: Additional filings for any changes to identifying information.
 

Ensuring compliance is a cornerstone of sustaining the integrity and legality of your business operations. Failure to adhere to regulatory mandates can lead to severe consequences such as penalties, fines, and legal repercussions.

Our comprehensive Compliance Filings package, coupled with Licenses & Permits assistance, offers a robust solution to meet these obligations effectively. Not only will you fulfill the latest requirements, including beneficial ownership information reporting, but you’ll also streamline your compliance process by addressing all additional filing requirements.

Furthermore, our services extend to securing the necessary licenses and permits essential for your business activities, safeguarding your operations against potential disruptions and legal challenges. With our support, you can navigate the intricate landscape of regulatory compliance with confidence, preserving your good standing status and mitigating risks proactively.

  • Custom summary of required federal, state, and local licenses and permits
  • Direct access to all of your required applications, simplifying and expediting the process for you
  • Notifications on upcoming expiration dates and new license requirements

The Corporate Transparency Act, particularly its latest requirement, the Beneficial Ownership Information Reporting Rule, carries significant implications for small business owners. Effective from January 1, 2024, this mandate necessitates that most limited liability companies and corporations file a beneficial owner report. However, grappling with the intricacies of this new legislation can divert attention from the core activities of running and expanding one’s business. The services offered by The Private Firm offer a streamlined solution, enabling customers to proactively address this requirement and ensure compliance with the law, thereby sidestepping potential criminal and civil penalties.

These penalties can include imprisonment for up to two years, fines as high as $10,000, and daily fines of up to $500. Through three straightforward steps, customers can mitigate the risk of noncompliance while saving both time and money. By providing basic information about the individuals who own or control their business, customers initiate the creation of a personalized and accurate report.

Subsequently, The Private Firm generates and files a customized report that fulfills the beneficial ownership information reporting requirement. Upon filing this tailored report with the Financial Crimes Enforcement Network, customers receive confirmation of completion, ensuring peace of mind in navigating this regulatory landscape.

Ready to get a
Beneficial Ownership Information Report?