Understanding the New Beneficial Ownership Information (BOI) Reporting Requirements for 2025
As we approach January 1, 2025, businesses and investment property owners across the U.S. are preparing for a new compliance deadline. The Financial Crimes Enforcement Network (FinCEN) has introduced a new Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA), requiring certain companies in the United States to disclose key details about their beneficial owners and provide ownership information to FinCEN. The Beneficial Ownership Information (BOI) Report is required for certain un-exempt businesses. They are required to report their beneficial ownership information, and must do so by 01/01/25.
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If you own a business or investment properties or manage real estate assets through a business entity, understanding the BOI filing requirements is crucial. This process includes submitting reported information on your legal entity and its ownership as required by law. Here’s what you need to know and how Allegiant Management Group can help you navigate this process.
What is Beneficial Ownership Information (BOI) Reporting?
The BOI reporting requirement mandates that certain businesses, including many investment property owners, report beneficial ownership details to FinCEN. A beneficial owner is anyone who holds 25% or more ownership or exercises significant control over the entity. By requiring this, FinCEN seeks to increase transparency around business ownership, making it harder for illegal activities to hide within anonymous business structures.
This Beneficial Ownership Information Report (BOIR) will require specific ownership interest's data and personal information for compliance. Importantly, this information will be kept secure within FinCEN, accessible only to authorized parties.
Who Must File a BOI?
The Beneficial Ownership Rerporting requirements dictate that most corporations, LLCs (limited liability company), and similar entities must file a standard BOI form, which can be done electronically. Certain entities are exempt, including publicly traded companies and some regulated industries. DBA (registered to do business as) may need to supply as well. These exemptions typically apply to entities already subject to other forms of reporting. Exemptions include:
- Publicly traded companies
- Certain regulated entities (e.g., banks, financial institutions, and insurance companies)
- Inactive entities meeting specific criteria
- Charities and nonprofits
What Information Must Be Reported?
Each BOI requires specific information about beneficial owners, such as:
- Full legal name
- Date of birth
- Residential or business address
- Identification number (e.g., driver’s license, passport) and issuing jurisdiction
This information, once collected, will need to be submitted accurately, as errors could lead to penalties. Keeping this information on record with FinCEN is an ongoing responsibility for business owners. Anytime a change in ownership occurs, updates must be made to reflect accurate ownership.
Why Compliance Matters for Businesses and Investors
For investment property owners, compliance with BOI report filing requirements adheres to federal law and shows a commitment to transparency. Reporting beneficial ownership information is key to keeping your legal entity compliant. You can access the BOI form on FinCEN’s website once you have set up an account. The Beneficial Ownership Information deadline is January 1, 2025. It is essential to avoid missing the BOI filing deadline, as doing so could result in a daily penalty of up to $500.
BOI compliance is also an opportunity to review and ensure that your ownership structures are clear and that roles within your entity are well defined. Failing to file your beneficial ownership information (BOI) report could put your business at risk, not only from financial penalties but from a loss of reputation if found non-compliant. Beneficial ownership information reporting Florida entities follow the same guidelines as the rest of the required entities in the United States.
How Allegiant Management Group Can Support Your Compliance Efforts
Allegiant Management Group (AMG) offers a range of services to support investment property owners, including:
- Entity Structuring Guidance – Insights to help you meet regulatory requirements, from initial formation to ongoing adjustments in ownership.
- BOI Reporting Assistance – Guidance in gathering and submitting accurate information for your initial BOI report. AMG can help you navigate every step, ensuring that your reporting is complete and compliant.
- Ongoing Compliance Support – Continuous support as laws evolve, helping you adjust and respond to regulatory changes. This ensures that your filings stay up to date.
- Investment Property Management – Comprehensive property management services that let you focus on your investments while AMG handles day-to-day management.
How to Prepare for the January 1, 2025, Deadline
- Identify Beneficial Owners – Review your ownership structure to identify individuals with significant ownership or control.
- Collect Required Information – Gather accurate details, ensuring all records for beneficial owners are complete and up to date.
- Confirm Eligibility – Determine if your entity is exempt. If so, document this exemption carefully to avoid misunderstandings.
- Submit Your BOI Report – File through FinCEN’s platform by the deadline. Newly created entities have 90 days to file their initial report.
- Maintain Up-to-Date Records – Keep your BOI report updated if ownership changes, filing amendments as needed.
Preparing early ensures you have time to address any issues. It’s recommended to start gathering the required information well before the deadline to avoid last-minute complications.
Penalties for Non-Compliance
Non-compliance with BOI requirements can lead to fines and, in severe cases, criminal penalties. Financial impacts can also affect your investment returns and reputation. If a report is filed incorrectly or late, you may face penalties. Ensure that any creation or registration changes are documented with the Secretary of State for all reporting companies created or registered before January 1, 2024. The Beneficial Ownership filing 2024 public notice was met with some contention, but there is no way around it without consequence.
Get Prepared for 2025
Preparing now for the January 1, 2025, BOI deadline ensures compliance and lets you focus on expanding your real estate portfolio. BOI filing Florida property management company Allegiant Management Group is committed to assisting investment property owners with compliance needs. If you own investment properties and need assistance, Allegiant Management Group is here to help. Contact us today to learn more.
E-File Your BOI Report
You can self e-file your Beneficial Ownership Information Report directly on the FinCEN website. If you require assistance many business attorneys are offering this service to help keep you complaint.
WATCH: BOI Compliance & Reporting Explained
For a quick overview on the upcoming deadline for Beneficial Ownership Information, check out this helpful video:
FAQs About BOI Reporting & Compliance
Who qualifies as a beneficial ownership under the new BOI requirement?
A beneficial owner is anyone holding 25% or more ownership or having substantial control over the entity.
What information must be included in the BOI report?
Full legal name, date of birth, residential or business address, and identification number of beneficial owners must be reported.
What are the penalties for failing to file a BOI report?
Failure to file can result in fines and, in severe cases, criminal penalties.
Are any entities exempt from BOI filing?
Yes, certain entities like publicly traded companies, banks, and nonprofits are exempt. Other corporations limited liability companies, and other required entities are not exempt.
How can Allegiant Management Group assist with BOI compliance?
Allegiant Management Group offers guidance on BOI reporting, entity structuring, and ongoing BOIR compliance support.
Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Consult a legal professional for advice specific to your situation.
