The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a final rule mandating the reporting of Beneficial Ownership Information (BOI). This initiative aims to prevent the misuse of business entities for illegal activities. The rule applies to most corporations, limited liability companies (LLCs), and other entities formed or registered in the United States. These businesses are required to disclose information about their beneficial owners—those individuals who ultimately own or control the company. The regulation takes effect on January 1, 2024.

The purpose of BOI reporting is to enhance national security and promote transparency and accountability within the U.S. financial system. By enforcing this rule, FinCEN aims to disrupt the activities of criminal actors, who exploit anonymous shell companies to conceal illegal profits. This measure also addresses gaps in the U.S. anti-money laundering framework and closes existing regulatory loopholes.

While the rule exempts 23 categories of entities from reporting requirements, many of these exempt organizations are already subject to government reporting obligations. For a detailed list of exemptions and further guidance, refer to FinCEN’s official guidelines:

All information below is referenced from the Financial Crimes Enforcement Network website found at https://www.fincen.gov.  For information specific to BOI reporting, visit https://www.fincen.gov/boi or https://www.fincen.gov/boi-faqs

CLICK HERE TO FILEA BOI REPORT: https://boiefiling.fincen.gov/

Key Questions on the FinCEN Beneficial Ownership Information Reporting #

What companies will be required to report beneficial ownership information to FinCEN? #

What specific information does my company need to report to FinCEN? #

To comply with the new BOI reporting requirements, reporting companies must submit the following details:

1. Company Information:
   • Legal name and any trade name or “Doing Business As” (DBA) name
   • Primary business address
   • Jurisdiction of formation or initial registration (for U.S. or foreign companies)
   • Taxpayer Identification Number (TIN)
2. Beneficial Owners and Company Applicants (if applicable):
   For each beneficial owner and company applicant, the following information is required:
   • Legal name
   • Date of birth
   • Residential address
   • An identifying number from a valid government-issued document, such as a driver’s license, passport, or other approved ID
   • An image of the document used for identification

These details ensure accurate reporting and strengthen the effort to prevent the misuse of anonymous business entities.

When do I need to report my company’s beneficial ownership information to FinCEN? #

Are some companies exempt from the reporting requirement? #

FinCEN’s Small Entity Compliance Guide includes this table and checklists for each of the 23 exemptions that may help determine whether a company meets an exemption (see Chapter 1.2, “Is my company exempt from the reporting requirements?”). Companies should carefully review the qualifying criteria before concluding that they are exempt. Please see additional FAQs about reporting company exemptions in “L. Reporting Company Exemptions” below.

Is a sole proprietorship a reporting company? #

How do I report my company’s beneficial ownership information? #