Beneficial Ownership Information Reporting Rule

lindyzeller
Aug 22, 2024
3 min read

Important Notice for Attorneys:

Filing Beneficial Ownership Information (BOI)

By Melinda Zeller

The Financial Crimes Enforcement Network (FinCEN) mandates that certain entities, including Professional Limited Liability Companies (PLLCs), file Beneficial Ownership Information (BOI). This regulation aims to enhance transparency and combat financial crimes by identifying individuals who own or control companies.

What is BOI?

BOI involves collecting and reporting information about individuals who own, control, or have significant interests in an entity. For PLLCs, this includes anyone who directly or indirectly owns 25% or more of the company or who exercises substantial control over it.

Why is BOI Important?

BOI helps authorities track and prevent illicit financial activities such as money laundering and terrorist financing. By knowing who is behind a company, enforcement agencies can better combat these crimes, ensuring a more transparent and secure business environment.

Why You Should Comply

Compliance with BOI regulations is not only a legal requirement but also crucial for maintaining the integrity of your practice. Non-compliance can result in significant penalties, including civil fines up to $500 per day, criminal fines up to $10,000, and imprisonment for up to two years for willfully providing false information or failing to file complete reports (FinCEN).

Deadlines

For entities created or registered before January 1, 2024: You have until January 1, 2025, to file your initial BOI report.
For entities created or registered in 2024: You must file within 90 calendar days of receiving actual or public notice of the entity’s creation or registration.
For entities created or registered on or after January 1, 2025: You must file within 30 calendar days of receiving actual or public notice of the entity’s creation or registration (FinCEN).

How to Comply

Determine Eligibility: Verify if your PLLC needs to file BOI.
Gather Required Information: Collect the full legal name, date of birth, residential address, unique identifying number (e.g., SSN, passport number), and an image of an identifying document (e.g., driver’s license, passport) for each beneficial owner.
Access FinCEN’s Website: Visit the FinCEN website and navigate to the BOI section.
Create an Account:
- Click “Create Account” if you don’t already have one.
- Provide your email and create a password.
- Verify your email through the link sent by FinCEN.
Log In: Use your credentials to log in.
Complete the BOI Report:
- Enter the legal name of your PLLC, its address, and Employer Identification Number (EIN).
- Provide details for each beneficial owner, including their full name, date of birth, address, and unique identifying number.
- Upload images of the identifying documents for the beneficial owners.
Review the Information: Carefully review all entered information to ensure it is accurate.
Submit the Report: Click “Submit” to file your BOI report. Save or print the confirmation receipt for your records.
Update as Needed: If there are any changes in beneficial ownership, log in to update the information and submit the revised report within 30 days of the change (FinCEN).

Conclusion

Filing BOI is essential for transparency and compliance with FinCEN regulations. By following these detailed steps, you can ensure your PLLC meets the necessary requirements. Failure to comply can result in severe penalties, so it is crucial to adhere to the filing deadlines. For further guidance, visit the FinCEN BOI FAQs.

*THIS IS NOT LEGAL ADVICE

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on this content does not create an attorney-client relationship between you and the author or their law firm. Legal situations vary widely, and you should consult with a qualified attorney for advice specific to your individual circumstances. The author assumes no responsibility for any actions or omissions taken based on the information contained in this article.