What is BOIR?

BOIR, or Beneficial Ownership Information Report, is a mandatory filing under the Corporate Transparency Act (CTA). The purpose of BOIR is to increase transparency in business ownership by requiring certain U.S. entities to report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This initiative helps the government combat illicit activities such as money laundering, tax evasion, and terrorism financing.

What is a Beneficial Owner?

A beneficial owner is defined as any individual who:

• Directly or indirectly owns 25% or more of a company, or

• Exercises substantial control over the company’s operations.

Businesses are required to report identifying information about each beneficial owner, including:

• Full legal name

• Date of birth

• Residential address

• A unique identifying number from a government-issued document (e.g., driver’s license or passport)

Who Needs to File BOIR?

The BOIR must be filed by corporations, LLCs, and other similar entities registered in the U.S. Entities registered before January 1st, 2024, must submit their BOIR by January 1st, 2025. Entities registered on or after this date must file their BOIR within 30 days of registration. Certain entities, such as publicly traded companies and large operating companies, are exempt from this requirement.

Why is BOIR Important?

The BOIR plays a crucial role in increasing transparency around business ownership and preventing criminal misuse of companies. By requiring companies to disclose beneficial ownership information, the government can more easily track illegal activities, enhance enforcement of financial regulations, and safeguard the financial system from abuse.

Filing the BOIR accurately and on time is essential to avoid penalties, including fines and possible legal consequences.