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Summary
Most companies need to file a report by 01/01/2025 with the Financial Crimes Enforcement Network, disclosing identifying information of their business and the business owners. This is to reduce money laundering and financial crimes. The report can be submitted online for free.
What is the corporate transparency act?
The corporate transparency act is federal legislation enacted by Congress on January 1, 2021. The purpose of the act is to prevent money laundering, tax fraud, and other financial crimes perpetrated by companies. The act will require companies to file reports of company beneficial ownership interest.
When does it start, and when do I need to file beneficial ownership information?
The act took effect on January 1, 2024. Companies formed before that date are given until January 1, 2025 to file beneficial ownership information (BOI).
Companies formed after the effective date have 90 days to file beneficial ownership information, until 1/1/25, when companies will be given only 30 days to file.
What is the BOI report?
The BOI report includes identifying information for the business and the beneficial owners. Beneficial owners are individuals that directly or indirectly own at least 25% of a company, or individuals who exercise “substantial control” over the company (senior officers/directors).
The report itself requires the following information for both the business and the beneficial owners:
- legal names
- DBA’s / alternative names
- address
- tax identification number
- unique ID number and image of the ID (individuals)
Are their exemptions to the filing requirement?
Some companies are exempt from the requirement to file a BOI report. Exempt companies are generally companies that are already under an obligation to disclose beneficial ownership information, such as publicly-traded companies. A list of exemptions may be found here.
How do I file a BOI report?
BOI reports must be filed with the Financial Crimes Enforcement Network (FinCen). BOI reports must be done electronically. Visit the BOI e-filing system to get started.
Want help with your BOI report or other compliance obligations?
The business lawyers at Collier Legal act as outside general counsel for several Ohio businesses. We help businesses stay compliant with new and existing regulations, including BOI requirements. Contact us today to learn more.
About
Attorney Collier started his own law firm straight out of law school and has been practicing law in Ohio for 5+ years. During that time, Joe focused on business law and litigation, gaining some exposure to intellectual property law. While running his firm in 2021, Joe decided to go back to school and get his patent license. Since then, Attorney Collier has been focusing on protecting innovators and entrepreneurs through his expertise in intellectual property and business law.