Nearly all US businesses are required to file their Beneficial Ownership Information Report (BOIR) by January 1, 2025. For some reason many companies are charging hundreds of dollars to go to a website for you and type in information - here's how you can file the BOIR accurately yourself. Failing to file on time can subject you to major fines and even up to 2 years of prison time.
In this post, we'll answer two things: 1) What is the BOIR and who needs to fill it out and 2) How can you quickly fill out your BOIR out for free
This post is for informational purposes only and is not legal, financial, or regulatory advice.
Pro-tips: See more information on filing here on Skip. Or go directly to the FinCEN website.
What is the Beneficial Ownership Information Report and Who Needs to File It?
The Beneficial Ownership Information (BOI) Report, mandated under the US Corporate Transparency Act (CTA), is designed to combat financial crimes by increasing the transparency of company ownership. This report, required by FinCEN (Financial Crimes Enforcement Network), mandates companies to disclose information about their beneficial owners—individuals who directly or indirectly own or control the company. By revealing ownership details, the CTA aims to prevent misuse of business structures for illegal activities like money laundering, fraud, and financing of terrorism.
Entities required to file include domestic and foreign companies operating in the US, except for certain exemptions like publicly traded companies and specific nonprofits. Beneficial ownership includes anyone with substantial control, such as senior officers, key decision-makers, or those with influence over critical company decisions. Required information includes names, birthdates, addresses, and identifying documents for these individuals. FinCEN began accepting reports on January 1, 2024, with deadlines varying based on the company’s creation or registration date.
Failure to file accurately can result in significant penalties, with civil fines of up to $500 per day for ongoing violations and potential criminal penalties of up to $10,000 and two years imprisonment. Authorized federal, state, and tribal officials and certain financial institutions (with consent) can access BOI data for due diligence and risk management, helping organizations comply with anti-money laundering and sanctions laws.
How Can You Quickly Fill Out Your BOIR For Free?
To quickly and accurately complete your Beneficial Ownership Information Report (BOIR) for free, you can leverage FinCEN’s secure online e-filing system, launched in January 2024. This system is accessible through FinCEN’s official website, allowing you to submit beneficial ownership information electronically. Before starting, gather all necessary details about each beneficial owner, including their full name, date of birth, address, and identification number (such as a passport or driver’s license). This preparation will streamline the process, reducing the likelihood of mistakes or delays in your submission.
If you’re unfamiliar with the filing requirements, FinCEN provides free resources, including guides, FAQs, and support to clarify the process. Additionally, many business organizations and government resources offer step-by-step instructions on completing your report accurately. Reviewing these resources can save time and help you avoid common pitfalls, especially around defining beneficial owners and understanding exemptions.
For companies created or registered before January 1, 2024, the initial BOIR filing deadline is January 1, 2025. Newer entities have shorter filing windows after their creation or registration. Staying within these timeframes is crucial, as missed or incorrect filings can lead to significant fines. However, if you discover an error within 90 days of your initial filing deadline, you may correct it without penalty, allowing you to complete the process quickly and without unnecessary costs.