BOI Reporting Compliance Requirements

Beneficial Ownership Information (boi) Report

Written by Curt Bach

October 25, 2024

Understanding the requirements of the Corporate Transparency Act is crucial for businesses to maintain compliance and avoid penalties. Under this Act, certain entities known as “reporting companies” are obligated to file Beneficial Ownership Information reports with the Financial Crimes Enforcement Network (FinCEN), detailing information about the company’s beneficial owners and other relevant details.

Is My Company Required to File BOI Reports?

The Corporate Transparency Act mandates “reporting companies” to file reports with FinCEN, identifying the company’s beneficial owners and other pertinent information. A reporting company typically includes most entities formed under state law, such as LLCs, LLPs, corporations, and others.

Beneficial ownership generally encompasses the following:

  • Individuals with substantial control over the company
  • Individuals with direct or indirect ownership interests amounting to at least 25% of the company’s equity interests
  • Company applicants

There are numerous exemptions to the definition of “reporting company.” Below are some notable exemptions:

  • Banks, bank holding companies, credit unions, governmental entities, publicly traded companies, insurance companies, public accounting firms, and tax-exempt entities
  • “Large operating companies” that satisfy the following criteria:
  • Have a physical office in the U.S.
  • Employ more than 20 full-time U.S.-based employees
  • Report more than $5 million in gross receipts on their prior federal tax return

When Do You Have to Complete BOI Reporting?

According to current regulations, existing reporting companies (entities formed before January 1, 2024) must file with FinCEN between January 1, 2024, and January 1, 2025. Reporting companies formed on or after January 1, 2024, and before January 1, 2025, must file within 90 days of their formation. Entities formed after January 1, 2025, are required to file within 30 days of their formation. Newly formed companies should coordinate with their legal and tax advisors to ensure they complete the reporting within the required timeline.

Hawkins Ash CPAs is Here to Help Your Company Maintain BOI Reporting Compliance

By offering a variety of service options to fit your needs, the professionals at Hawkins Ash CPAs are prepared to help make BOI reporting seamless.

Full-Service Reporting

We’ll collect your necessary information (i.e. beneficial owner info, photo ID’s, reporting company info, etc.) and file the report(s) on your behalf. Whether you are part of multiple reporting entities or just one, you can trust our professionals to ensure compliance.

Third-Party Service Provider

We will connect you with a trusted third-party service provider who can offer guidance on what reports need to be filed with FinCEN. This option allows for self-service with some support.

BOI Consulting

If you are uncertain about the requirements for you and your company or how to get started, the professionals at Hawkins Ash CPAs are here to answer your questions and guide you through the self-filing process.

Contact your Hawkins Ash CPAs Advisor for more information and a service quote.

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Curt Bach
I joined Hawkins Ash CPAs in August 2010, and am currently the Director of Tax. From the Firm's Medford office, I provide a variety of tax services, including trust and estate tax preparation and planning. I provide these services to small business, individual, trust, estate, and non-profit clients.

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