Disclaimer: These FAQs are explanatory only and do not supplement or modify any obligations imposed by statute or regulation. Please refer to the Beneficial Ownership Information Reporting Rule, available at www.fincen.gov/boi, for details on specific provisions. FinCEN expects to publish further guidance in the future. Questions on any of this content can be directed to FinCEN Contact.
A. General Questions
A.1. What is beneficial ownership information?
Beneficial ownership information includes identifying details about individuals who directly or indirectly own or control a company. This involves information such as names, addresses, dates of birth, and social security numbers, aiming to increase transparency in corporate ownership structures.
[Issued March 24, 2023]
A.2. Why do companies have to report beneficial ownership information to the U.S Department of the Treasury?
The reporting requirement, established through the Corporate Transparency Act in 2021, is part of the U.S. government’s comprehensive efforts to combat money laundering and prevent the misuse of shell companies for illicit purposes. This aims to enhance financial transparency and strengthen national security.
[Issued September 18, 2023]
A.3. Under the Corporate Transparency Act, who can access beneficial ownership information?
Authorized entities, including Federal, State, local, and Tribal officials, as well as certain foreign officials, can access this information for activities related to national security, intelligence, and law enforcement. Financial institutions can access it in specific circumstances with the reporting company’s consent, adhering to detailed access rules and protection measures.
[Updated January 4, 2024]
A.4. How will small businesses become aware of the BOI reporting requirements?
FinCEN is actively conducting an outreach and education campaign, employing various formats, including virtual and in-person events, multimedia content, and the Small Entity Compliance Guide. Small businesses are encouraged to check FinCEN’s BOI webpage for guidance, information, and updates. Subscribing to email updates is available for timely information.
[Issued December 12, 2023]
A.5. Is there additional guidance for identifying reporting companies?
Yes, FinCEN’s Small Entity Compliance Guide for beneficial ownership information reporting includes a flowchart to help determine if a company is a reporting company (see Chapter 1.1, “Is my company a ‘reporting company’?”).
B. Reporting Process
B.1. Should my small business report beneficial ownership information now?
The BOI E-Filing website is active since January 1, 2024. Reporting deadlines vary based on the company’s creation or registration date. Small businesses created or registered before January 1, 2024, have until January 1, 2025, to file their initial BOI report. Those created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
[Updated January 4, 2024]
B.2. When do I need to report my small business’s beneficial ownership information to FinCEN?
Reporting deadlines depend on the creation or registration date. Small businesses created or registered before January 1, 2024, have until January 1, 2025, to file their initial beneficial ownership information report. Those created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving notice of the company’s creation or registration to file their initial BOI report. Businesses created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
[Updated December 1, 2023]
B.3. When will FinCEN accept beneficial ownership information reports?
FinCEN started accepting beneficial ownership information reports on January 1, 2024. Reports will not be accepted before then.
[Issued March 24, 2023]
B.4. Will there be a fee for submitting a beneficial ownership information report to FinCEN?
No. There is no fee for submitting your beneficial ownership information report to FinCEN.
[Updated January 4, 2024]
B.5. How will I report my small business’s beneficial ownership information?
Small businesses required to report will do so electronically through a secure filing system available via FinCEN’s BOI E-Filing website.
[Updated January 4, 2024]
B.6. Where can I find the form to report?
Access the form by going to FinCEN’s BOI E-Filing website and select “File BOIR.”
[Updated January 4, 2024]
B.7. Is a reporting small business required to use an attorney or a certified public accountant (CPA) to submit beneficial ownership information to FinCEN?
No. FinCEN expects that many, if not most, reporting small businesses will be able to submit their beneficial ownership information independently using the guidance provided. However, professional service providers such as lawyers or accountants are available for consultation if needed.
[Issued November 16, 2023]
B.8. Who can file a BOI report on behalf of a small business, and what information will be collected on filers?
Anyone authorized by the small business to act on its behalf, such as an employee, owner, or third-party service provider, may file a BOI report. Individual filers should be prepared to provide basic contact information, including their name and email address or phone number.
[Issued December 12, 2023]
C. Reporting Company
C.1. What companies will be required to report beneficial ownership information to FinCEN?
Reporting companies include domestic reporting companies (corporations, limited liability companies, etc.) and foreign reporting companies (entities formed under the law of a foreign country registered to do business in the U.S.). The Small Entity Compliance Guide includes a flowchart to help identify if a company is a reporting company (see Chapter 1.1, “Is my company a ‘reporting company’?”).
C.2. What entities are exempt from the reporting requirements?
There are 23 types of entities exempt from reporting, including public companies, certain financial institutions, and entities subject to specific reporting requirements. Refer to the Beneficial Ownership Information Reporting Rule for a detailed list and criteria.
C.3. How does FinCEN ensure the security and confidentiality of reported information?
Reported information is stored securely using rigorous information security methods. FinCEN collaborates with authorized entities accessing this information to maintain its security and confidentiality.
C.4. Is there any assistance available for reporting companies navigating the process?
Yes, FinCEN’s Small Entity Compliance Guide offers detailed information and a flowchart to determine reporting obligations. Professional service providers, such as lawyers or accountants, can also provide assistance.
C.5. How can reporting companies stay informed about updates and guidance?
Regularly check FinCEN’s BOI webpage for guidance, information, and updates. Subscribe to email updates for timely information.
[Issued December 12, 2023]
C.6. Are there any resources specifically for small businesses navigating BOI reporting?
Yes, small businesses can find valuable resources in FinCEN’s Small Entity Compliance Guide, tailored to simplify the reporting process. The guide includes a flowchart to determine reporting obligations.
C.7. Can reporting companies seek legal advice regarding BOI reporting?
Yes, reporting companies may seek legal or accounting advice for specific concerns or questions related to BOI reporting. Consult with qualified legal professionals for accurate and tailored guidance.
C.8. What happens if a reporting company fails to comply with BOI reporting requirements?
Non-compliance may result in penalties. Reporting companies should prioritize understanding and meeting their reporting obligations to avoid legal consequences.
C.9. Is there ongoing support for reporting companies after the initial reporting?
FinCEN commits to providing ongoing guidance and support. Reporting companies are encouraged to stay informed about updates and changes in BOI reporting requirements through official channels.
These summaries of FinCEN’s FAQs are intended to provide general guidance. Small businesses seeking specific legal advice or accounting assistance should consult with qualified professionals.
Click here to see full FinCEN’s FAQs.
