The BOI Reporting Rule is a new federal regulation that requires certain companies to report information about their beneficial owners and company applicants to the Financial Crimes Enforcement Network (FinCEN). The purpose of the rule is to combat money laundering, terrorist financing, and other financial crimes.
The rule took effect on January 1, 2024, and applies to most corporations, limited liability companies, and other similar entities that are created or registered in the United States.
If your business falls under this category, you will need to file a Beneficial Ownership Information (BOI) Report with FinCEN, which will include information about your beneficial owners and company applicants.
Below, we will explain what a company applicant is, why you need to report information about them, and how to do it properly.
What is a Company Applicant?
A company applicant is the person or entity that files the document that creates or registers your company with the state, tribe, or other U.S. jurisdiction.
For example, if you form a corporation in Florida, the company applicant is the person or entity that files the Articles of Incorporation with the Florida Department of State.
A company applicant can be an individual or a business entity, such as another corporation, LLC, partnership, trust, or association.
However, there can be no more than two company applicants for each reporting company. If more than one person or entity is involved in the filing of the document that creates or registers your company, the company applicant is the person or entity that is primarily responsible for directing or controlling the filing.
Why Do You Need to Report Information about Your Company Applicant?
The purpose of the BOI Reporting Rule is to collect and maintain accurate and updated information about the individuals who ultimately own or control the companies that operate in the U.S. financial system.
This information will help FinCEN and other law enforcement agencies combat money laundering, terrorist financing, tax evasion, fraud, and other financial crimes that threaten the U.S. national security and economy.
By reporting the required information about your company applicant, you will help FinCEN verify the identity and legitimacy of your company and the people who control it.
How Do You File a BOI Report?
You will submit the required information about your company applicant and beneficial owners through a BOI Report, which you will file electronically through the BOI E-Filing System, a secure web portal. You will need to provide the following information about your business:
- Legal name
- Address
- State or jurisdiction of formation or registration
- Taxpayer identification number (TIN)
You will also need to provide the following information about your company applicant and beneficial owners:
- Legal name
- Date of birth
- Current address
- Unique identifying number and issuing jurisdiction from an acceptable identification document such as a passport or U.S. driver’s license
- An image of the identification document
You can also request a FinCEN Identifier or FinCEN ID, which is a unique number that FinCEN will assign to your company applicant and beneficial owners. This will allow you to use the FinCEN Identifier instead of the personal information in future reports or updates.
Once you file your initial BOI report, you will need to make sure to update it if the reported information changes.
We Can Help You Comply with the BOI Reporting Rule
We hope this post has helped you understand what a company applicant is and how to comply with FinCEN’s BOI Reporting Rule. However, we know that the rule can be complex and confusing, especially for small businesses and startups. That is why we are here to help you.
We are Jurado & Associates, P.A., a law firm that specializes in business and corporate law. We have the experience and expertise to assist you with all your legal needs, including forming and registering your company, complying with the BOI Reporting Rule, and protecting your rights and interests.
We are more than just lawyers. We are your trusted advisors and partners. We care about your success and satisfaction. We will work with you to understand your goals and challenges and provide you with personalized and practical solutions.
If you need any help or advice regarding the BOI Reporting Rule or any other legal matter, please do not hesitate to contact us. You can reach us by phone at (305) 921-0976, by email at [email protected], or by WhatsApp at +1 (305) 921-0976.
