What You Need to Know About
The Beneficial Ownership Report

On January 1, 2024, new federal regulations went into effect that require many private corporations, limited liability companies (LLC) and other entities that do business in the United States to report information about the persons who own or control 25% or more of a company.

This is commonly referred to as the Beneficial Ownership Information reporting (BOI) and applies to businesses in the U.S.

These new reporting requirements were created to strengthen the integrity of and to eliminate critical vulnerabilities in the US financial system.

When do you need to file a report?

  • Companies created or registered to do business before January 1, 2024, will have until January 1, 2025, to file their initial BOI reports.
  • *Companies created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days to file their initial BOI reports. In addition, reporting companies created on or after January 1, 2024, are required to submit information about the individuals who formed the company.
  • *Companies created or registered on or after January 1, 2025, will have 30 calendar days to file their initial BOI reports

*The requirement begins at the time of the actual or public notice that the company’s creation or registration is effective.

Reporting beneficial ownership information is not an annual requirement. The report only needs to be submitted once, unless information needs to be updated or corrected.

There are four pieces of information are required about each beneficial owner:

  • Owner’s name
  • Owner’s date of birth
  • Owner’s address
  • An identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State. An image of the document must be submitted.

Janet Yellen, Secretary of the Treasury stated,
“The launch of the United States’ beneficial ownership registry marks a historic step forward to protect our economic and national security. Corporate anonymity enables money laundering, drug trafficking, terrorism, and corruption. It harms American citizens and puts law-abiding small businesses at a disadvantage. Having a centralized database of beneficial ownership information will eliminate critical vulnerabilities in our financial system and allow us to tackle the scourge of illicit finance enabled by opaque corporate structures.”

Call us at 720.878.2280 and we’ll file the BOI report for you.