What is a BOI Report? Benefit Ownership Information Reporting

The BOI report, or Beneficial Ownership Information report, is a U.S. federal filing that discloses the owners of a business. It's part of the Corporate Transparency Act and aims to increase business transparency and combat illicit activities. Most businesses, particularly LLCs and corporations, are required to file this report with the Financial Crimes Enforcement Network (FinCEN).

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What is a BOI Report? Benefit Ownership Information Reporting

The government can determine who actually owns or controls a company by looking at a BOI report. Beneficial Ownership Information (BOI) is what this report is all about, whether those people own stock in the company or simply make important decisions behind the scenes.

It's about the actual individuals who hold the power within the organization, not your shareholders or public-facing staff. This type of reporting aids in stopping fraud, illicit money transfers, and the use of companies for unclear ends. The government is making it more difficult for criminals to hide their identities behind anonymous company names by requesting that some businesses report this information.

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What Is BOI for LLC?

BOI, or Beneficial Ownership Information, is about showing who really owns or controls a business.

For an LLC, this means listing every individual who:

• Owns 25% or more of the company, or

• Has substantial control like the CEO or managing member even without ownership

This requirement helps the U.S. government prevent crimes like money laundering, tax evasion, and fraud that often happen when people hide behind anonymous companies. If you're asking what is a BOI report, think of it as a transparency tool it's not about taxes it's about revealing the people in charge.

Who Needs to file a BOI?

As of March 26, 2025, only foreign reporting companies must file a BOI report. If your business is formed in another country but registered to do business in the U.S., you must file. If your business is formed in the U.S., you’re currently exempt under FinCEN’s updated rules. But don’t just assume check your formation documents. If you registered a foreign LLC in a U.S. state, this applies to you.

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Types of Reporting Companies

FinCEN separates reporting companies into two categories:

Under the March 2025 interim rule, only foreign reporting companies must report. Domestic companies are exempt unless future rules change.

Exemptions to FinCEN Beneficial Ownership Report

Since they are already well-structured or regulated, some businesses are exempt from filing a BOI report. These comprise general partnerships, sole proprietorships, and big businesses with more than 20 full-time U.S. employees, a yearly revenue of more than $5 million, and a physical office in the United States. Additionally exempt are publicly traded businesses and regulated organizations such as banks, credit unions, and insurance companies. You probably don't need to submit a BOI report if your company falls into one of these categories.

FinCEN Reporting Requirements for LLCs

Depending on where your company was established, you may or may not be required to file a BOI report if you are an LLC. You don't currently need to file anything if your LLC was formed in the United States. However, you must file a BOI report if your LLC was established outside of the United States but is registered to conduct business there. 

Names, addresses, and a copy of a government-issued ID are among the basic details you'll need to submit about your business and the individuals who own or manage it. All of this is a part of FinCEN's endeavors to increase the transparency of business ownership and stop illicit activities such as money laundering and fraud. Although U.S.-based LLCs are currently exempt, it's a good idea to stay informed because regulations can change.

Documents Required Before Filing BOI Report

If your LLC does need to file, you’ll need to collect the following before you start:

For Each Beneficial Owner

• Full legal name

• Date of birth

• Current residential address

• A scanned copy of a government-issued photo ID (passport, driver’s license, etc.)

• ID number and issuing jurisdiction

For the Company

• Legal name and any “Doing Business As” (DBA) names

• U.S. business address

• Jurisdiction where it was formed

• Taxpayer Identification Number (TIN or EIN)

You’ll also need information about the company applicant if the business was formed on or after January 1, 2024.

Penalties If You Don’t File BOI

FinCEN takes compliance seriously. If you’re required to file and you don’t or you knowingly provide false information there are both civil and criminal penalties:

• $500 per day for each day the violation continues

• Up to $10,000 in total fines

• Imprisonment of up to 2 years

Again, these penalties only apply if your company is required to file (i.e., foreign reporting companies). Domestic LLCs are exempt as of now, but if you’re unsure play it safe and double-check.

Step-by-Step How to File Beneficial Ownership Information Report

Filing your BOI report is a simple process, and the good news is it’s completely free. You don’t need to be a tech expert or a legal pro to get it done. Just follow these easy steps:

Step 1: Gather your documents

Before you begin, collect everything you’ll need. This includes the names, home addresses, birthdates, and ID numbers of each beneficial owner, plus basic company details like your business name and tax ID (EIN). Having it all in one place will make the filing process much smoother.

Step 2: Visit FinCEN’s BOI E-Filing Portal

Once your documents are ready, go to the official BOI filing website set up by FinCEN. That’s where you’ll be doing the actual filing, either by filling the form online or uploading a completed version.

Step 3: Start a new report

Choose the option to file a new report. You can complete the form directly on the website, or if you prefer, you can download a PDF version, fill it out, and upload it back when you're done.

Step 4: Enter all the information

Enter all the necessary information with care. Verify ID numbers, dates of birth, and spellings one more time to ensure accuracy. Finding minor mistakes early is preferable to dealing with fixes later.

Step 5: Submit and save your receipt

Once your report has been reviewed, submit it. After it is successfully filed, you will receive a confirmation. In the event that you later need to update or provide proof of filing, be sure to keep the confirmation or reference number for your records.

How to Make an Update or Correction in BOI After Filing

You are not required to submit your BOI report again each year, but you are required to update it within 30 days if anything changes. Adding a new owner, someone leaving the business or dying, changing an ID or address, or changing the name or structure of your company are all examples of this. Simply log in where you previously filed, locate your original report, make the necessary adjustments, and submit the updated version. It's easy, and updating or correcting your report doesn't cost anything.

How SK Financial Can Help With BOI Reporting

Although filing a BOI report may seem insignificant, it can be time-consuming and confusing, particularly if you're unsure of where to begin or if your company is required to file at all. Here's where advice can really help. This procedure doesn't have to be difficult or time-consuming, as we have years of experience assisting companies in meeting government regulations. Here's how we can assist, whether you're managing a foreign business in the United States or simply want to make sure you're doing things correctly:

• Examine your eligibility.

• Assist in obtaining the required paperwork

• Use FinCEN to file on your behalf.

• Observe any modifications or updates.

Support is available when you need it, so you can spend more time on your business rather than filling out federal forms. Make an appointment for a free consultation with one of our professionals to ensure that your company maintains compliance stress-free.

Conclusion

The main goal of the BOI report is to be transparent and show the government who actually supports a company. Although the regulations may seem complicated, they have recently been made simpler, and as of 2025, the majority of domestic businesses are exempt from filing. This report is still important, though, and failing to submit it could result in severe consequences if you are a foreign corporation or limited liability company operating in the United States.

Those risks are easily avoided. Simply keep yourself updated, compile the necessary paperwork, and submit on schedule. Additionally, consult SK Financial CPA experts if you're ever unsure. We will ensure that you complete it correctly the first time.

FAQs

1. Do single-member LLCs need to file a BOI report?

Not always. If your single-member LLC was formed in the U.S., you don’t need to file a BOI report under the 2025 rules. But if your LLC was created in another country and registered to do business in the U.S., then yes you’ll still need to file. The location where your company was formed is what really matters here, not how many people own it.

2. What if I miss the BOI filing or make a mistake?

Inaccurate information or missing the filing deadline can cause serious issues. In addition to daily fees of up to $500, FinCEN may also impose criminal penalties in extreme circumstances. Avoid waiting until the last minute and update it as soon as possible if you have any doubts. Fixing it is free and safer than running the risk of fines.

3. Can I change my BOI report after it’s submitted?

Certainly. The BOI reports are subject to change. You must update the report if the owner of the company departs, someone moves, someone joins, or their ID information changes. After the change, you have 30 days to complete the task. It helps keep your company's information current and compliant with the law, and the update process is easy and cost-free.

4. Where do I actually file a BOI report? Is it hard?

You file it online through the official FinCEN website. The form walks you through each step, and you can either complete it right there or upload a PDF version. It’s not hard once you have all your details ready, but if you’re short on time or just don’t want to deal with it, getting help is always an option.

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