Understanding the New BOIR Filing Requirement: What You Need to Know and How to Comply

As part of recent federal efforts to enhance transparency in business ownership and prevent financial crimes such as money laundering, a new filing requirement has been introduced that affects many local businesses: the Beneficial Ownership Information Report (BOIR). This filing is mandatory for most businesses and must be completed to remain compliant with federal law. Here’s what you need to know about this new requirement, why it’s being implemented, and how to file your report.

The BOIR is part of a larger regulatory initiative under the Corporate Transparency Act (CTA), aimed at curbing illicit activities like money laundering, tax evasion, and terrorism financing. The goal is to make it more difficult for individuals to hide behind anonymous shell companies by requiring businesses to disclose detailed information about the people who own, control, or benefit from the company.

By filing the BOIR, businesses will provide the government with essential information about their beneficial owners—those who ultimately have substantial control over the company or own at least 25% of it. This information will help law enforcement agencies identify and combat financial crimes that exploit corporate anonymity.

The BOIR requires businesses to report key details about their beneficial owners, including:

1. Full Legal Name
2. Date of Birth
3. Residential or Business Address
4. Unique Identifying Information (such as a passport number or driver’s license)
   
   

Businesses will also need to file information about their Company Applicants—the individuals who registered the business or were instrumental in forming it.

Most corporations, LLCs, and similar entities registered in the U.S. will be subject to this reporting requirement. However, there are exemptions for some entities, such as publicly traded companies, certain nonprofits, and financial institutions.

Filing your BOIR is a straightforward process but must be completed by the deadline to avoid penalties. Here’s a simple step-by-step guide:

1. Gather Your Information: Ensure you have all necessary details about each beneficial owner and company applicant. This includes full names, dates of birth, addresses, and government-issued IDs (such as driver’s licenses or passports).
2. Access the FinCEN Filing Portal: The Financial Crimes Enforcement Network (FinCEN) provides an online portal where businesses can submit their BOIR. You will need to create an account or log in if you already have one. Go to https://www.fincen.gov
3. Complete the Filing Form: Follow the prompts to enter the required information about your business, beneficial owners, and company applicants. Be thorough and accurate to avoid issues or delays.
4. Submit and Save Confirmation: Once the form is complete, submit it through the portal. You should receive a confirmation of submission—save this for your records in case you need to refer to it later.
5. Stay Updated on Future Filings: The BOIR is not a one-time filing. Businesses will need to update their reports whenever there are significant changes in ownership or control, or any other information that was previously submitted.

The filing deadline for many businesses is January 1, 2025, although businesses formed after this date will be required to submit their BOIR within 30 days of formation. Failure to file or submitting inaccurate information could result in substantial penalties, including fines of up to $10,000 or imprisonment for willful noncompliance.

We understand that navigating new regulations can be overwhelming, especially for small businesses. If you need help completing your BOIR, consider seeking assistance from a legal or financial professional who can guide you through the process.

The Platte Canyon Area Chamber of Commerce is also here to help our members with any questions you might have about this new filing requirement. Ensuring that your business remains compliant is crucial, and we’re here to support you in every way we can.

• Why: The BOIR is required to combat financial crimes and promote transparency in business ownership.
• What: Businesses must report information about their beneficial owners and company applicants.
• How: Gather the necessary details, use FinCEN’s online portal to file, and stay updated on future reporting requirements.
  
  

By filing the BOIR on time, you’ll help your business stay compliant with federal regulations and contribute to a more transparent and trustworthy business environment.

Let’s keep our local businesses in Bailey and the Platte Canyon area strong and aboveboard. For more information or assistance, reach out to us at the Chamber.