As of January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) now requires that many businesses in the U.S. file a Beneficial Ownership Information (BOI) report. This new requirement is designed to increase transparency, combat money laundering, and prevent financial crimes by making it easier for law enforcement to identify the individuals who ultimately own or control companies.
Learn more: www.fincen.gov/boi
What is BOI?
The BOI filing mandates that certain businesses submit information about their beneficial owners—those who directly or indirectly own or control 25% or more of a business. This information includes their full legal name, date of birth, residential address, and a copy of a government-issued ID.
Who Needs to File?
Generally, most U.S. businesses created or registered after January 1, 2024, will need to file a BOI report. However, certain types of entities, like large operating companies or government-regulated entities, may be exempt. Real estate professionals should review these guidelines, as real estate investment firms, LLCs, and other entities within the industry may be subject to these reporting requirements.
How to File and When?
Businesses formed before January 1, 2024, have until January 1, 2025, to file their BOI reports, while new businesses will need to file within 30 days of their formation. Reports can be submitted electronically through FinCEN's secure filing system.
Why Does This Matter?
For real estate professionals, understanding BOI requirements is essential, as many clients may be affected. Real estate transactions often involve LLCs or investment entities, and these clients will benefit from knowledgeable guidance on compliance.
For more information, visit FinCEN’s website or consult with a legal professional to ensure you’re prepared.
File today: www.fincen.gov/boi
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