What You Need to Know: Upcoming Filing Deadline for the Beneficial Ownership Information (BOI) Report

The Corporate Transparency Act (CTA) requires many smaller and medium-size companies to file a Beneficial Ownership Information Report with the Financial Crimes Enforcement Network by January 1, 2025. Missing the filing deadline could result in civil and criminal penalties.

Purpose of the Filing

The Beneficial Ownership Information Report collects information about your company and the individuals who control it to help identify and prevent illicit activities, including money laundering, fraud, counterfeiting, and other financial crimes

Types of Entities Impacted

The Corporate Transparency Act (CTA) focuses on companies that are not supervised by regulatory agencies or entities that employ fewer than 21 full-time employees and generate less than $5 million in annual U.S revenue. Entities that could be impacted by this deadline include (but not limited to) the following:

• Domestic corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States
• Foreign reporting companies: Those entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States

Who Needs to File

All “beneficial owners” of qualified companies must file the Beneficial Ownership Information Report. Beneficial owners include individuals who meet the following criteria:

• Exercises “substantial control” over the reporting company, or
• Owns or controls at least 25% of the reporting company’s ownership interests.

Information Required

The report will require details about the company and personal information about individuals who have significant control over the entity.

Filing Frequency

Moving forward, the Beneficial Ownership Information Report must be filed annually.

Next Steps

• Determine if your company and its beneficial owners are required to submit the Beneficial Ownership Information Report by the filing deadline.
• If needed, seek guidance from your tax advisor to help identify your filing status and navigate the filing requirements.

The tax professionals at Hancock Askew are ready to answer your questions. Contact us for more information or reach out directly to your Hancock Askew advisor.