How to File Your BOI Report as a Northwest Client
As of January of 2024, a new aspect of the Corporate Transparency Act (CTA) took effect, requiring most new and existing businesses registered in the U.S. to file a Beneficial Information Ownership Report, or BOI Report. While we aren’t a fan of extra chores when running a business, Northwest is still here to simplify the process for you. Before we dive in to how to fill out the BOI Report as our client, let’s go over what the BOI Report is and its importance.
What is the BOI Report?
The Beneficial Ownership Information Report, a result of the Corporate Transparency Act, is a report designed to help curb financial crimes committed by those exploiting the secrecy business ownership can provide. Money laundering, tax evasion, and the financing of shady organizations can all fly under the radar thanks to the anonymous nature of certain entity structures.
The CTA, put in place by the Anti-Money Laundering Act (AMLA) of 2020, represents some of the first major changes to U.S. money laundering laws since the Patriot Act of 2001. Through the BOI Report, most new and existing businesses are now required to disclose ownership information to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
This new requirement applies to any and all reporting entities(with a few exemptions), meaning any registered business entities like LLCs or corporations that are formally recognized by a U.S. state, even if they were originally formed in another country.
What is the deadline for filing my BOI Report?
For businesses formed prior to 2024, your report is due by the last day of 2024. For companies formed on or after January 1st, 2024, your window is significantly smaller, and your report must be filed within 90 days of formation. The penalty for failing to file this report on time is $591 per day, so unless you’re itching to donate to FinCEN, you’ll want to file early and accurately.
Can I file the BOI Report myself?
Absolutely. If you’re the do-it-yourself type, FinCEN has given two options for filing your BOI Report: through the online filing portal built for the report, or by editing the provided PDF copy of the report and uploading the completed report through FinCEN’s BOI Report submission page. For the PDF version, you will need Adobe Reader 8 or an equivalent PDF editor to make changes to the document.
Steps to file your BOI Report with Northwest
Filing your Beneficial Ownership Information Report using Northwest’s system is a breeze, and our experts have boxed things up nicely so you can file and get back to business. This is what you’ll need to fill out your BOI Report:
- Your company’s EIN. If you’ve just formed your company, make sure you’ve received an EIN before filing your BOI Report, otherwise you’ll have to amend it later.
- A government issued form of identification. Every company applicant and beneficial owner that you’ll be listing on your report will need an ID with their picture on it, unless excluded for religious reasons. FinCEN has provided a list of acceptable forms of identification on their website.
Here are the steps to file your BOI Report as a Northwest client:
Step 1: Log into your account
Once you’ve placed a BOI Report filing order, access your Northwest account and follow these steps:
- Click on the notification in your account that reads Orders Items Requiring Attention.
- Select Initial Report at the top of our intake form as the type of filing.
- Start following the prompts on the form from top to bottom.
Step 2. Provide information on your company
Information on your company is the first to be collected. You’ll need to provide your company’s:
- Address
- Formation date
- Tax ID or EIN number
- Any DBAs (also called trade names or assumed names)
In this section, you’ll also have the option to indicate whether your company is a foreign pooled investment vehicle and to request a company FinCEN ID, which will make amending this filing easier in the future.
Step 3. Enter company applicant information
Company applicants are individuals who were responsible for forming the company and filing necessary paperwork, though they may not have any vested interest or authority in the business. Were the company being reviewed, these are the individuals the government would reach out to with questions.
If, for example, the owner of the company directed the business formation but the secretary submitted the paperwork to the state, both would be listed as company applicants.
All company applicants must be listed on the BOI Report, and each must provide a scan or a clear photo of a government issued form of identification. You’ll also need to provide the issuing jurisdiction of your ID, and a valid address for each individual listed. Any applicants already registered with FinCEN may provide their personal FinCEN ID numbers in lieu of reentering personal information.
Step 4. Enter beneficial owner information
Beneficial owners are individuals with a significant share (at least 25%) in the company or those who are able to exercise substantial control over the business’s interests. Just as with company applicants, make sure to list all beneficial owners by name.
Home addresses and photo IDs are required for each beneficial owner, even if some overlap has occurred and this information was listed above under the company applicants section. You’ll also still have the option to provide a 12-digit FinCEN ID number instead, if the individual has already registered with FinCEN.
Step 5. Certify and submit!
Once you’ve double-checked that all the information provided is accurate, check the box at the bottom of our intake form certifying the details of your company, and click confirm. Congratulations are in order! You’ve survived another obstacle of the paperwork variety, and you’re free to continue running your business like a champion.
FinCEN will provide us with a document notifying us that your filing was processed successfully, and we’ll upload that straight to your account.
Next Steps After Filing Your BOI
Now that you’ve filed, you won’t have to do so again unless you need to amend the information provided like, for example, if a beneficial owner sells their share of the company, or changes their address. If any such changes occur, you’ll need to report these updates within 30 days by submitting a new BOI Report through FinCEN’s online portal, or by placing a new BOI Report filing order with Northwest. Changes to the company applicant’s information will not necessitate an amended report, however, and FinCEN has provided a short list of likely triggers that would require an updated report to be filed.
Remaining in compliance as a business owner can seem like a full-time job, but partnering with Northwest Registered Agent can help take the extra work off your plate. Annual reporting, Beneficial Ownership Information Reporting, and Registered Agent Service can all be handled in one spot when you’re part of the NWRA club.
