This article is a comprehensive guide to BOI report for LLC owners across all states. The Corporate Transparency Act (CTA) of 2020 established the Beneficial Ownership Information Reporting (BOI) requirement as a federal law, mandating most US-based LLCs to comply with BOI reporting, with limited exceptions.
Simply put, BOI reporting applies to all LLCs, with limited exceptions. All LLCs, unless exempt must file the BOI report for LLC.
The BOI reporting requirement for LLC went into effect on January 1, 2024.
If you own or manage an LLC, understanding this BOI reporting requirement is crucial to avoid potential penalties and ensure compliance with federal law.
What is the BOI report for LLC?
To comply with the BOI reporting requirement, you must file a BOI report.
A BOI report for LLC is a document that discloses information about the LLC and the identity and certain details of the beneficial owners of an LLC and its company applicants.
A beneficial owner is defined as any individual who, directly or indirectly, either:
- Owns or controls at least 25% of the ownership interests of the LLC; or
- Exercises substantial control over the LLC’s management or policies.
A company applicant for the Beneficial Ownership Information (BOI) report refers to one or two individuals (maximum) who have first filed the paperwork to form or register the LLC.
If you as an owner or manager of the LLC filed the documents to form the LLC yourself, then you are the company applicant. If you hired someone (lawyer, accountant, etc) to form your LLC, then they are the company applicant.
The information about company applicants is only required for BOI reports filed for LLCs formed or registered after January 1, 2024. For LLCs formed before that date, company applicant information is not required at this time.
The BOI report for LLC is not an annual report. Unlike annual reports, the BOI report for LLCs is a one-time filing, only requiring updates or corrections if the previously reported information changes or needs to be corrected.
Do I need to file a BOI report for my LLC?
Yes, you need to file a BOI report for your LLC, with limited exceptions.
Most LLCs, regardless of size or activity, are considered “reporting companies” under the CTA and subject to the BOI reporting requirement. However, there are some exceptions, such as:
· Certain types of reporting companies, including financial institutions and publicly traded companies;
· LLCs formed or registered solely for holding passive investments in certain qualifying entities;
· LLCs solely owned by certain exempt entities, such as US states or municipalities;
While the BOI reporting requirement applies to most LLCs, 23 specific categories are exempt from filing. These LLC exemptions encompass entities such as publicly traded companies, certain nonprofits, and specific financial institutions. For a comprehensive list and detailed explanations of the exemptions, please refer to guidance here: Who is Exempt from Filing a BOI Report?
When do I file the BOI Report for LLC?
The deadline for filing your initial BOI report depends on when your LLC was formed or registered:
- Before January 1, 2024: You have until January 1, 2025, to file your report.
- In 2024: You have 90 calendar days from receiving notice that your LLC is officially formed or registered.
- On or after January 1, 2025: You have 30 calendar days from receiving notice that your LLC is officially formed or registered.
How do I file the BOI Report for LLC?
You can file your BOI Report for LLC fast and easy with our secure BOI Report filing service.
Our BOI reporting tool enables US companies to quickly and accurately generate and file BOI Reports. Three simple steps and you are done. No login or signup required. We interface with FinCEN so you can save time to focus on what matters most – growing your business.
Not sure if you need to file BOI report for your LLC? Answering a few simple questions will help determine if you need to submit a BOI Report. So, what are you waiting for? Let’s go and find out!
What information do I need to report?
For each beneficial owner identified and company applicant, the BOI report for LLC requires reporting the following information:
- Full name
- Date of birth
- Address
- Unique identifying number and issuing jurisdiction from an acceptable government-issued ID
Consequences of non-compliance with BOI Reporting for LLC
Failing to file a BOI report or filing an inaccurate BOI report for LLC can result in civil and criminal penalties.
Civil penalties include fines of up to $500 for each day that the violation continues.
Criminal penalties include imprisonment for up to two years and/or a fine of up to $10,000.
Stay informed about BOI Report for LLC
We don’t only help you file the BOI Report for LLC. We help you Stay Informed.
For complete and up-to-date information on BOI reporting requirements and resources, consult our website or file your BOI Report.
Remember: LLCs have an ongoing duty to file updated BOI reports to report changes to information provided in earlier reports. If needed, LLCs must file corrected BOI reports to correct errors discovered on previously filed BOI reports.
File Your Initial, Updated or Corrected BOI Report with Us. Fast and Easy. Three simple steps and you are done. No login or signup required.
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