What is BOI reporting?
Part of the Anti-Money Laundering Act of 2020, the Corporate Transparency Act (CTA) established the procedures for reporting beneficial ownership information (BOI) for US businesses.
Who does it apply to?
All US businesses (including branches of foreign companies) with domestic as well as foreign shareholders. Exemptions include large businesses with more than $5mm revenue or 20 employees.
Periodicity: One time
Existing businesses as on 1-Jan-2024 have reporting deadline of 31-Dec-2024. New businesses that are formed after 1-Jan-2024 should report within 90 days of incorporation.
What to report?
Information about owners with direct or indirect ownership of more than 25% or the individuals with "substantial control"
Penalties?
Civil penalties up to $500 for each day of violation. Criminal penalties depend on the non-violation.