Understanding Beneficial Ownership Information (BOI) Reporting: What You Need to Know

Beneficial Ownership Information (BOI) refers to details about individuals who own or control at least 25% of a company or exercise substantial control over it. The Financial Crimes Enforcement Network (FinCEN) mandates certain entities to report this information to enhance transparency and combat illicit financial activities.

This requirement has been the subject of ongoing court proceedings, and as of 12/26/25, BOI filing is now voluntary once again.

While filing is not currently mandatory, it’s still a good idea to stay informed and prepare in case the requirement becomes mandatory in the future. Here’s what you need to know:

Who Needs to File?

Entities required to file BOI reports include:

• Domestic Reporting Companies: Corporations, limited liability companies (LLCs), and other entities created by filing documents with a secretary of state or similar office in the U.S.

• Foreign Reporting Companies: Entities formed under foreign laws but registered to do business in the U.S. by filing with a secretary of state or similar office.

Certain entities are exempt from this requirement, such as large operating companies meeting specific criteria, regulated entities, and inactive entities. For a comprehensive list of exemptions, refer to FinCEN's guidance.

Penalties for Non-Compliance:

Failure to comply with BOI reporting requirements can result in:

• Civil Penalties: Up to $591 per day for each day the violation continues.

• Financial Crimes Enforcement Network

• Criminal Penalties: Fines up to $10,000 and imprisonment for up to two years for willful violations, such as knowingly providing false information or willfully failing to file.

Stay tuned to the recent rulings on the BOI website.

How to File:

To file your BOI report:

1. Access the BOI E-Filing System: Visit FinCEN's BOI E-Filing System

2. Prepare Required Information: Gather details about the reporting company, beneficial owners, and company applicants, including: Legal names, Addresses, Dates of birth, Identification numbers (e.g., driver's license or passport numbers)

3. Complete the BOI Report: Follow the on-screen instructions to enter the necessary information.

4. Review, Certify & Submit the Report

Note: You will need to upload a picture of the owner(s) driver's license or passport.

For detailed instructions, you can refer to FinCEN's Beneficial Ownership Information Reporting Filing Instructions or the short YouTube video below if you need additional support.

This process takes less than 10 minutes with the information handy.