{"id":5580,"date":"2024-01-17T07:55:01","date_gmt":"2024-01-17T12:55:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/what-is-the-new-beneficial-ownership-information-report-requirem.html"},"modified":"2026-05-15T13:22:00","modified_gmt":"2026-05-15T18:22:00","slug":"what-is-the-new-beneficial-ownership-information-report-requirem","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-the-new-beneficial-ownership-information-report-requirem.html","title":{"rendered":"What Is the New Beneficial Ownership Information Report Requirement for LLCs and Corporations?"},"content":{"rendered":"\n
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What Is the New Beneficial Ownership Information Report Requirement for LLCs and Corporations?<\/h1>\n\n
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\n By Madison Hess, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

The Beneficial Ownership Information Report<\/span> (BOIR) requires companies to submit information about company ownership to the Financial Crimes Enforcement Network<\/span> (FinCEN<\/span>) under the Corporate Transparency Act<\/span>. This is a new requirement for companies formed under the laws of a foreign country<\/span> but registered to do business in the United States.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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On January 1st, 2024, the Financial Crimes Enforcement Network<\/span> (FinCEN<\/span>) launched a new website for companies to report information regarding the people who own or control them.\u00a0Businesses formed in a foreign country<\/span><\/strong> but registered to do business in the U.S. are now required to submit this information in the form of a Beneficial Ownership Information Report<\/span> (BOIR).<\/p>\n

File your BOIR report before your deadline. Our trusted partner LegalZoom<\/a> can help you get compliant and avoid penalties.<\/i><\/b><\/p>\n

The Corporate Transparency Act<\/span><\/h2>\n

The new BOIR<\/a> requirement comes from the Corporate Transparency Act<\/span> (CTA<\/span>) passed by Congress in 2021. It became effective on January 1, 2024. The intent behind the beneficial ownership information report<\/span> to the U.S. Department of the Treasury<\/span> is to increase companies\u2019 visibility. Greater visibility should diminish the opportunity for illegal activities like money laundering<\/span>. This Act from the United States\u2019 rulemaking body applies broadly to many business entities, including small businesses<\/span> and large operating companies. Under the CTA<\/span>, reports are submitted to FinCEN<\/span>, the government agency<\/span> responsible for analyzing financial transactions in the interest of national security<\/span>. There are civil and criminal penalties for failing to comply with the CTA<\/span>, so review the requirements carefully.<\/p>\n

Does My Company Need to File a BOIR?<\/h2>\n

Many business owners are scrambling to understand this new legislation and how it applies to their companies. The big question on their minds is whether or not their company needs to participate in beneficial <\/span>ownership information reporting<\/span>.\u00a0Only foreign companies are required to file a BOIR. Domestic companies are exempt from the reporting requirement<\/span>.<\/p>\n

Furthermore, under FinCEN<\/span>, \u201cforeign entities will not be required to report any U.S. persons as beneficial owners<\/span>, and U.S. persons will not be required to report BOI<\/span> with respect to any such entity for which they are a beneficial owner<\/span>.\u201d<\/p>\n

Domestic Reporting Companies<\/span><\/p>\n

Foreign <\/span>Reporting Companies<\/span><\/p>\n