As of January 1, 2024, the United States has ushered in a new era of financial transparency with the enforcement of robust Beneficial Ownership Information (BOI) reporting mandates. This pivotal move not only strengthens the nation’s commitment to combating illicit activities but also sets a benchmark for global financial accountability. Let’s delve into the intricacies of these transformative requirements.”
Beneficial Ownership Information (BOI):
BOI refers to identifying the individuals who directly or indirectly own or control a legal entity, going beyond surface-level ownership.
A beneficial owner is an individual who either directly or indirectly:
(1) exercises substantial control over the reporting company, or
(2) owns or controls at least 25% of the reporting company’s ownership interests
Who Needs to File:
Companies required to report are called reporting companies. There are two types of reporting companies:
• Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
• Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
Reporting Requirement :
If a reporting company is created or registered on or after January 01, 2024, the reporting company will need to report information about itself, its beneficial owners and its company applicants and if company is registered before January 01, 2024, reporting company will need to report information about itself and its beneficial owners.
Timeline:
If your company existed before January 1, 2024, it must file its initial beneficial ownership information report by January 1, 2025. If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective.