Important Update: Beneficial Ownership Information (BOI) Requirement – What You Need to Know

Dear Business Owners

Starting January 1st,2024, businesses across the country must comply with the Beneficial Ownership Information (BOI) requirement under the Corporate Transparency Act. This new rule is designed to improve transparency and help prevent illegal activities, like money laundering and fraud, by revealing the individuals who ultimately own or control a business.

What is the BOI Requirement?

The BOI requirement mandates that businesses report information about their beneficial owners—individuals who have significant control or ownership in a company. This information will help create a registry of business owners to ensure transparency in corporate activities.

Why is BOI Needed?

This measure was introduced to curb financial crimes such as money laundering, tax evasion, and terrorist financing. By tracking the true owners of businesses, the BOI requirement aims to eliminate anonymous shell companies often used to hide illicit activities.

Key Deadlines

Businesses formed or registered before January 1, 2024, must submit their beneficial ownership information by January 1, 2025. Any new businesses formed on or after January 1, 2024, will need to file their BOI report within 30 days of registration.

Who Needs to Register?

• Corporations, limited liability companies (LLCs), and other similar entities are required to comply.
• Small companies with limited revenue or staff are typically included unless they meet specific exemption criteria.

Are There Any Exceptions?

Yes. Certain entities are exempt, such as:

• Publicly traded companies
• Nonprofits
• Banks and financial institutions
• Dormant companies with limited revenue and transactions

Quick Step-by-Step to Register

1. Gather Beneficial Owner Information: Collect names, addresses, dates of birth, and ID documents for individuals who own or control the business.
2. Visit the BOI Registration Portal: Go to the official BOI Registration Portal to start your registration.
3. Create an Account and Complete the Form: Set up your business profile and input the necessary details.
4. Review and Submit: Double-check all information and submit. Keep a copy of the confirmation for your records.

For additional details or to begin registration, please visit the BOI Registration Portal at BOIRegistration.gov.