Blogs
FAQs About the New Beneficial Ownership Information (BOI) Reporting Requirements
Michel Knott
As of January 1, 2024, a new reporting requirement under the Corporate Transparency Act (CTA) took effect. At Knott CPA, we know this change may raise questions, and we're here to provide clarity on this important topic. Below, we've compiled some frequently asked questions (FAQs) to help you understand what this means for your business and how you can stay compliant.
What is a BOI Report?
A Beneficial Ownership Information (BOI) report is a document that provides essential details about the ownership of a company. Specifically, it includes information such as the company's legal name, mailing address, and employer identification number. Additionally, it requires disclosure of key details about the company's beneficial owners, including their name, birthdate, address, and a unique identifying number from a driver’s license, passport, or state-issued ID.
When Are BOI Reports Due?
The due dates for BOI reports depend on when your company was established:
- New Companies (established in 2024 or later) : You have 90 days from the date of formation to file your BOI report.
- Existing Companies (formed before 2024) : You must file your BOI report by January 1, 2025.
How Often Are BOI Reports Filed?
BOI reports do not expire and do not require annual filing. However, if any information within the report changes (such as the details of beneficial owners), you are required to submit an updated BOI report within 30 days of the change.
Who Needs to File a BOI Report?
BOI reporting applies to domestic companies formed by filing a document with the Secretary of State or a similar office, including corporations and LLCs. However, some companies are exempt from this requirement, including:
- Publicly traded companies
- Financial services firms
- Tax-exempt organizations
- Accounting firms
- Large operating companies that meet specific criteria
Why Is the BOI Reporting Requirement Still in Effect Despite a Court Ruling?
On March 1, 2024, a federal court in Alabama ruled that the reporting requirements under the CTA were unconstitutional in the case of National Small Business United v. Yellen. However, this ruling only applies to the plaintiffs in that specific lawsuit. For most other entities, including those not exempt from the BOI requirements or not involved in that lawsuit, the CTA remains in full effect.
How Knott CPA Can Assist You
At Knott CPA, we're here to help you navigate the complexities of these new reporting requirements. If you believe your company needs to file a BOI report, we can assist you in gathering the necessary information and ensure your report is submitted correctly and on time.
Contact our team today
to discuss your specific situation and ensure compliance with the Corporate Transparency Act.
