BOI filing for LLCs is the process of reporting the identities of individuals who have significant ownership or control over the LLC to comply with Beneficial Ownership Information (BOI) regulations.
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A BOI (Beneficial Ownership Information) report lists the people who own or have major influence over a business. It specifically records details of anyone who controls a business or owns 25% or more of it.
Starting January 1, 2024, LLCs must provide BOI reports because the Financial Crimes Enforcement Network (FinCEN) aims to ensure transparency. In the past, LLCs didn’t have to report owner information to FinCEN, but this new rule changes that.
This step helps the government track business ownership and stop illegal activities like money laundering through shell companies.A BOI form for an LLC includes the name, address, date of birth, and other identifying details of each owner. Knowing what’s required for a BOI form can help you follow the rules and protect your business.
Most LLCs in the United States must file a BOI report, but there are some exceptions. Any LLC formed or registered with a Secretary of State (or similar office) usually needs to file. However, if your LLC is already regulated by federal agencies, like certain financial institutions, you might be exempt. Nonprofits and some larger businesses under strict federal rules may also be excluded from this requirement.
If you’re unsure if your LLC needs to file, remember that most small registered businesses do. Talk to a legal advisor if you’re not sure. Some industries and business structures have exemptions, so knowing if your LLC qualifies can save you time, effort, and penalties.
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