How to Fill Out the BOIR Form Accurately: A Step-by-Step Guide?

As part of the Corporate Transparency Act (CTA), the Beneficial Ownership Information Report (BOIR) requires businesses to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This form is crucial for increasing transparency and preventing illicit activities like money laundering and tax evasion. As the BOIR filing deadline approaches, it’s important to understand how to fill out the BOIR form accurately to avoid penalties, delays, and potential legal consequences.

In this article, we’ll guide you through the process of completing the BOIR form accurately, step by step. Whether you’re a small business owner, a corporate executive, or a compliance professional, this guide will help ensure you meet your filing requirements on time.

What is the BOIR Form?

The Beneficial Ownership Information Report (BOIR) is a form that requires certain companies in the United States to disclose key information about their beneficial owners. A beneficial owner is anyone who ultimately owns or controls a company—usually through direct or indirect ownership of at least 25% of the company’s equity or through significant control over its activities.

The BOIR form helps the U.S. government combat financial crimes and increase corporate transparency. The information provided will be stored in a secure government database maintained by FinCEN, accessible to law enforcement and financial institutions when needed.

Filling out the BOIR form accurately is vital for staying compliant with federal regulations and avoiding hefty fines or penalties.

Who Needs to Fill Out the BOIR Form?

The BOIR form must be filed by certain entities, including:

• Corporations
• Limited Liability Companies (LLCs)
• Partnerships
• Any similar entities doing business in the U.S.

There are exemptions, such as for large operating companies, regulated entities (banks, credit unions, investment firms), and inactive companies with no assets or business activity. However, the majority of businesses, especially smaller or newer companies, will need to file the BOIR form.

Step-by-Step Guide to Filling Out the BOIR Form

To ensure you fill out the BOIR form accurately, follow these steps:

1. Determine the Beneficial Owners of Your Company

Before you begin filling out the BOIR form, you need to identify your beneficial owners. A beneficial owner is any individual who meets one of the following criteria:

• Owns 25% or more of the company’s equity (either directly or indirectly).
• Has significant control over the company, such as an executive or a senior officer, regardless of ownership percentage.

This process can be straightforward for businesses with few owners, but it can be more complicated for companies with multiple ownership layers or complex structures. If you are unsure about how to identify beneficial owners, consult a legal or compliance expert.

2. Gather the Required Information

Once you have identified your beneficial owners, you will need to collect the following information for each person:

• Full Legal Name: The individual’s full name as it appears on their legal documents (passport, driver’s license, etc.).
• Date of Birth: The individual’s complete date of birth.
• Residential or Business Address: The individual’s primary residential address, or a business address if applicable.
• Identification Number: This could be a government-issued ID, such as a passport number, driver’s license number, or any other identifying number issued by a recognized government agency.

For entities (such as a corporation or partnership) that own or control the business, you will need to provide their legal name and address as well.

3. Register with FinCEN

Before submitting the BOIR form, you will need to register your business with the Financial Crimes Enforcement Network (FinCEN). This registration process is done through the FinCEN website and involves creating an account, entering basic company information (such as your Employer Identification Number (EIN)), and confirming the legal structure of your business.

Registration with FinCEN ensures that you have access to the online portal where you can submit the BOIR form. Keep in mind that businesses that have already registered with FinCEN can simply log in to their account and update their information as needed.

4. Complete the BOIR Form

Once you’ve registered with FinCEN and gathered the necessary information, it’s time to fill out the BOIR form. The form can be accessed through the FinCEN portal, and it will ask you to provide the following information:

• Company Information: You will need to provide your business’s legal name, address, EIN, and jurisdiction of formation.
• Beneficial Owner Information: This is the most critical part of the form. For each beneficial owner, you will need to enter the following details:
  • Full Legal Name
  • Date of Birth
  • Residential or Business Address
  • Identification Number: You will need to input an identification number for each beneficial owner. This could be a passport number, driver’s license number, or a government-issued ID number from another recognized jurisdiction.
• Ownership Information: If applicable, you will need to enter details about any entities that own or control your business. For example, if your company is owned by a parent company or has multiple layers of ownership, you must include information about these entities.
• Control Information: If you have beneficial owners who do not own 25% of the business but still have control (e.g., senior executives or directors), you must include their information as well.

Once you’ve entered all the required information for your business and its beneficial owners, make sure to review the form carefully. Ensure that all names, addresses, and identification numbers are correct. A minor error could cause delays in processing or result in penalties.

5. Submit the Form to FinCEN

After reviewing the BOIR form, you can submit it electronically via the FinCEN portal. Once submitted, you will receive confirmation that your form has been successfully filed. Be sure to save a copy of the confirmation for your records.

It’s crucial to file the BOIR form on time. The first filing deadline is January 1, 2025, but businesses should start preparing early to ensure they meet the deadline.

6. Update the BOIR Form as Needed

After submitting your initial BOIR form, it’s important to keep track of any changes to your business’s ownership structure. If your company’s beneficial owners change (e.g., a new owner is added, or someone sells their shares), you must update the BOIR form within 30 days of the change.

Changes to the form can be made through the FinCEN portal, where you can log in and submit updated information.

7. Maintain Records for Future Filings

After completing the filing process, maintain records of the BOIR form submission and any supporting documentation in case of audits or future verification requests. You’ll also need to retain this information for potential updates and compliance with ongoing filing requirements.

Why Accuracy is Key

Filling out the BOIR form accurately is crucial to avoid fines, penalties, and potential legal action. The U.S. government takes transparency seriously, and any attempts to falsify or misrepresent information can result in significant consequences, including fines of up to $500 per day for late filings or false information. In severe cases, criminal penalties can be imposed.

Conclusion

Filling out the BOIR form accurately may seem daunting, but with the right preparation, it can be a straightforward process. Start by identifying your beneficial owners, gathering the necessary information, and registering with FinCEN. From there, follow the instructions carefully to complete the form and submit it on time.

Remember, the first filing deadline for the BOIR form is January 1, 2025, and businesses must comply with this new regulation to avoid penalties. If you need assistance, BOIR.org is here to help guide you through the process, ensuring that your submission is accurate, complete, and timely.

For more resources, guidance, and tools to help you comply with the Corporate Transparency Act, visit BOIR.org today.