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Beneficial Ownership Information Report (BOIR)

Writer's picture: ClickMyTaxClickMyTax


The US department of treasury has introduced this new compliance starting year 2024. Beneficial ownership information is reported to FinCEN through Beneficial Ownership Information Reports (BOIRs).


1. Who need to file BOIR


All business entities (i.e. a C corp, S corp, Single or Multi member LLC and sole proprietorship registered with the Secretary of State) needs to file BOIR.


2. Filing deadline


2.1 Initial BOIR


  • New entities created or registered after Jan-01-2024 must file BOIR within 90 days of creation or registration.

  • Existing entities created or registered before Jan-01-2024 must file BOIR by Jan-01-2025


2.2 Changes to previously filed BOIR


In case of any changes to previously filed BOIR must be reported within 30 days.


3. Penalty for non-compliance


  • Civil penalties of up to $591 for each day in case of willful voilation of reporting requirements.

  • May also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.


4. Does BOIR needs to be filed every year?


No, BOIR is not an annual filing requirement. It needs to be filed only once. However, in case of any changes to the previously filed BOIR, a report with the new information needs to be filed within 30 days.


Changes to previously filed BOIR could be - change in business address or address of beneficial owners, addition of new beneficial owners etc.


5. Who is a beneficial owner?


A beneficial owner is any individual who, directly or indirectly:

• Exercises substantial control over a reporting company; {OR}

• Owns or controls at least 25 percent of the ownership interests of the reporting company.


6. Who exercises significant control?


An individual exercises substantial control over a reporting company if the individual meets any of four general criteria:

  1. the individual is a senior officer;

  2. the individual has authority to appoint or remove certain officers or a majority of directors of the reporting company;

  3. the individual is an important decision-maker; or

  4. the individual has any other form of substantial control over the reporting company.


7. What information is reported in BOIR


  1. Basic information of the entity - name, EIN, physical address

  2. Details of beneficial owners - full name, date of birth, residential details and details of a identification document.


8. Where can I find more information on BOIR


More information regarding BOIR can be found at fincen's website at https://www.fincen.gov/boi.



Disclaimers: Above article is for the purpose of reference/information only. Please consider taking a professional advice before taking any action regarding above.

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