What Is BOI Reporting? Your Guide To Compliance

Are you puzzled by What Is Boi Reporting and its implications for your company’s compliance? This article, brought to you by WHAT.EDU.VN, provides a comprehensive, user-friendly breakdown of beneficial ownership information reporting under the Corporate Transparency Act (CTA). Discover everything you need to know about boi compliance, boi regulations, and filing requirements. Find clarity and answers to your questions about corporate compliance on what.edu.vn.

1. What is Beneficial Ownership Information?

Beneficial Ownership Information (BOI) is the identifying information about the individuals who directly or indirectly own or control a company. It’s a crucial aspect of corporate transparency and regulatory compliance.

2. Why Do Companies Have to Report Beneficial Ownership Information?

Congress passed the Corporate Transparency Act in 2021 to combat illicit activities. BOI reporting helps prevent bad actors from using shell companies or opaque ownership structures to hide or benefit from illegal gains. This is a key part of anti-money laundering efforts.

3. Who Can Access Beneficial Ownership Information?

Under the Corporate Transparency Act, FinCEN may permit access to BOI to:

Federal agencies engaged in national security, intelligence, or law enforcement activity.
State, local, and Tribal law enforcement agencies with court authorization.
Officials at the Department of the Treasury.
Foreign law enforcement agencies, judges, prosecutors, and other authorities that submit a request through a U.S. Federal agency.
Financial institutions with customer due diligence requirements.
Federal functional regulators or other appropriate regulatory agencies that supervise financial institutions.

BOI reported to FinCEN is stored in a secure, non-public database.

4. How Will Companies Become Aware of BOI Reporting Requirements?

FinCEN is conducting an outreach and education campaign to raise awareness. This includes virtual and in-person events, comprehensive guidance, multimedia content, and engagement with governmental offices, small business associations, and interest groups.

FinCEN provides updates on its BOI webpage and via email subscriptions.

5. How is an Indian Tribe Defined Under the Corporate Transparency Act?

“Indian Tribe” means any Indian or Alaska Native tribe, band, nation, pueblo, village, or community that the Secretary of the Interior acknowledges to exist as an Indian tribe. The Secretary of the Interior publishes a list of recognized Indian Tribes in the Federal Register annually.

6. Is Beneficial Ownership Information Reported to FinCEN Accessible Under the Freedom of Information Act (FOIA)?

No. BOI reported to FinCEN is exempt from disclosure under the Freedom of Information Act (FOIA). This ensures the confidentiality of sensitive ownership data.

7. Should My Company Report Beneficial Ownership Information Now?

FinCEN launched the BOI E-Filing website on January 1, 2024. The deadlines are:

Companies created/registered before January 1, 2024: File by January 1, 2025.
Companies created/registered in 2024: File within 90 calendar days after receiving notice.
Companies created/registered on or after January 1, 2025: File within 30 calendar days after receiving notice.

8. When Do I Need to Report My Company’s Beneficial Ownership Information to FinCEN?

Companies created/registered before January 1, 2024, have until January 1, 2025.
Companies created/registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving notice.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days.

9. When Will FinCEN Accept Beneficial Ownership Information Reports?

FinCEN began accepting BOI reports on January 1, 2024. Reports will not be accepted before this date. Ensure you are aware of the filing deadlines.

10. Will There Be a Fee for Submitting a Beneficial Ownership Information Report to FinCEN?

No. There is no fee for submitting your BOI report to FinCEN. Filing is free of charge.

11. How Will I Report My Company’s Beneficial Ownership Information?

You will report your company’s BOI electronically through a secure filing system available via FinCEN’s BOI E-Filing website.

12. Where Can I Find the Form to Report?

Access the form by going to FinCEN’s BOI E-Filing website and select “File BOIR.”

13. Is a Reporting Company Required to Use an Attorney, Certified Public Accountant, Enrolled Agent, or Other Service Provider to Submit Beneficial Ownership Information to FinCEN?

No. FinCEN expects that many reporting companies will be able to submit BOI on their own. However, you can consult with professional service providers for assistance if needed.

14. Who Can File a BOI Report on Behalf of a Reporting Company, and What Information Will Be Collected on Filers?

Anyone a reporting company authorizes may file a BOI report. Filers should provide basic contact information, including their name and email address, and certify the information is true and complete.

15. If a Third-Party Service Provider Who Is Not an Attorney Submits a Reporting Company’s Beneficial Ownership Information to FinCEN, Has That Provider Engaged in the Unauthorized Practice of Law?

The Corporate Transparency Act does not prevent a non-attorney third-party service provider from submitting BOI, if authorized. The determination of unauthorized practice of law is generally governed by state law.

16. How Do I Report Multiple Beneficial Owners or Company Applicants on One Report?

In the PDF version, use the “+” button. Online, use the “Add Company Applicant” or “Add Beneficial Owner” button.

17. What Companies Will Be Required to Report Beneficial Ownership Information to FinCEN?

Reporting companies include:

Domestic reporting companies: Corporations, LLCs, and other entities created by filing a document with a secretary of state or similar office in the United States.
Foreign reporting companies: Entities formed under foreign law that have registered to do business in the United States.

There are 23 types of entities exempt from the reporting requirements.

18. Are Some Companies Exempt from the Reporting Requirement?

Yes, 23 types of entities are exempt, including publicly traded companies, many nonprofits, and certain large operating companies.

Exemption No.	Exemption Short Title
1	Securities reporting issuer
2	Governmental authority
3	Bank
4	Credit union
5	Depository institution holding company
6	Money services business
7	Broker or dealer in securities
8	Securities exchange or clearing agency
9	Other Exchange Act registered entity
10	Investment company or investment adviser
11	Venture capital fund adviser
12	Insurance company
13	State-licensed insurance producer
14	Commodity Exchange Act registered entity
15	Accounting firm
16	Public utility
17	Financial market utility
18	Pooled investment vehicle
19	Tax-exempt entity
20	Entity assisting a tax-exempt entity
21	Large operating company
22	Subsidiary of certain exempt entities
23	Inactive entity

19. Are Certain Corporate Entities, Such as Statutory Trusts, Business Trusts, or Foundations, Reporting Companies?

It depends. If the entity was created by filing a document with a secretary of state or similar office, it is a reporting company, unless an exemption applies.

20. Is a Trust Considered a Reporting Company if it Registers with a Court of Law for the Purpose of Establishing the Court’s Jurisdiction Over Any Disputes Involving the Trust?

No. Registering with a court to establish jurisdiction does not make the trust a reporting company.

21. Does the Activity or Revenue of a Company Determine Whether it is a Reporting Company?

Sometimes. An entity’s activities and revenue can qualify it for an exemption. For example, there is an exemption for certain inactive entities, and another for companies with more than $5 million in gross receipts.

22. Is a Sole Proprietorship a Reporting Company?

No, unless created or registered by filing a document with a secretary of state or similar office.

23. Can a Company Created or Registered in a U.S. Territory Be Considered a Reporting Company?

Yes. Companies in U.S. territories like Puerto Rico, the Northern Mariana Islands, American Samoa, Guam, and the U.S. Virgin Islands are reporting companies if they meet the criteria.

24. Do the BOI Reporting Requirements Apply to S-Corporations?

Yes. An S-Corp that qualifies as a reporting company must comply with the reporting requirements.

25. If a Domestic Corporation or Limited Liability Company is Not Created by the Filing of a Document with a Secretary of State or Similar Office, is it a Reporting Company?

No. The inclusion of domestic corporations and LLCs in the reporting company definition assumes they are generally created by such filings.

26. Are Homeowners Associations Reporting Companies?

It depends. If an HOA was created by filing a document with a secretary of state or similar office, it may be a reporting company, unless it qualifies for an exemption.

27. Are Entities Formed Under Tribal Law Required to Report Beneficial Ownership Information?

Yes, if the entity meets the reporting company definition and does not qualify for any exemptions.

28. Do Beneficial Ownership Information Reporting Requirements Apply to Companies Created or Registered Before the Corporate Transparency Act was Enacted (January 1, 2021)?

Yes. BOI reporting requirements apply to all companies that qualify as “reporting companies,” regardless of when they were created or registered.

29. Is a Company Required to Report Its Beneficial Ownership Information to FinCEN if the Company Ceased to Exist Before Reporting Requirements Went Into Effect on January 1, 2024?

No, if the company ceased to exist as a legal entity before January 1, 2024, it is not required to report.

30. If a Reporting Company Created or Registered in 2024 or Later Winds Up Its Affairs and Ceases to Exist Before Its Initial BOI Report is Due to FinCEN, is the Company Still Required to Submit That Initial Report?

Yes. Reporting companies created in 2024 or later must report their BOI, no matter how quickly they cease to exist thereafter.

31. Who May File a BOI Report on Behalf of a Reporting Company Created or Registered in 2024 or Later That Ceases to Exist Before Its Initial BOI Report is Due to FinCEN?

Anyone whom a reporting company authorizes to act on its behalf may file a BOI report, even after the reporting company ceases to exist.

32. Is a Foreign Company Required to Report Its Beneficial Ownership Information to FinCEN if the Company Stopped Doing Business in the United States Before Reporting Requirements Went Into Effect on January 1, 2024?

A foreign company is not required to report if it ceased to be registered to do business in the United States before January 1, 2024.

33. Reporting Companies are Created (or, if a Foreign Company, Registered to Do Business) in the United States by Filing a Document with a Secretary of State or “Similar Office.” What Government Offices are “Similar Offices” to a Secretary of State for this Purpose?

A “similar office” is any office of a governmental authority under the law of a State or Indian Tribe where a domestic entity files to be created or a foreign entity files to register to do business in the United States. Federal agencies are not “similar offices.”

34. Does a Conversion from One Corporate Type to Another (e.g., LLC to Corporation) Create a New Domestic Reporting Company That Must File an Initial Beneficial Ownership Information Report with FinCEN?

Depending on the law of the State or Indian Tribe, a conversion filing may result in the creation of a “new” domestic reporting company.

35. Does a Reporting Company Need to File a Beneficial Ownership Information Report Each Time it Registers to Do Business in a Different State?

No. A reporting company does not need to file additional BOI reports in connection with subsequent filings with secretaries of state or similar offices that merely authorize a domestic reporting company or a foreign reporting company to do business under the laws of another State or Tribe.

36. Who is a Beneficial Owner of a Reporting Company?

A beneficial owner is an individual who either:

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

Trusts, corporations, or other legal entities are not considered beneficial owners.

How many beneficial owners can a reporting company have?

A reporting company can have multiple beneficial owners.
What if a reporting company does not have any individuals who own or control at least 25 percent?

FinCEN expects that every reporting company will be substantially controlled by one or more individuals.

37. What is Substantial Control?

An individual can exercise substantial control over a reporting company in four ways:

The individual is a senior officer.
The individual has authority to appoint or remove certain officers or a majority of directors.
The individual is an important decision-maker.
The individual has any other form of substantial control.

38. One of the Indicators of Substantial Control is That the Individual is an Important Decision-Maker. What are Important Decisions?

Important decisions include decisions about a reporting company’s business, finances, and structure.

39. What is an Ownership Interest?

An ownership interest is an arrangement that establishes ownership rights in the reporting company, such as shares of equity, stock, voting rights, or any other mechanism used to establish ownership.

40. Who Qualifies for an Exception from the Beneficial Owner Definition?

There are five instances in which an individual who would otherwise be a beneficial owner qualifies for an exception.

41. Is My Accountant or Lawyer Considered a Beneficial Owner?

Accountants and lawyers providing general accounting or legal services are generally not considered beneficial owners. However, an individual who holds the position of general counsel in a reporting company is a beneficial owner.

42. What Information Should a Reporting Company Report About a Beneficial Owner Who Holds Their Ownership Interests in the Reporting Company Through Multiple Exempt Entities?

If a beneficial owner owns or controls their ownership interests in a reporting company exclusively through multiple exempt entities, then the names of all of those exempt entities may be reported to FinCEN instead of the individual beneficial owner’s information.

43. Is an Unaffiliated Company that Provides a Service to the Reporting Company by Managing its Day-to-Day Operations, but Does Not Make Decisions on Important Matters, a Beneficial Owner of the Reporting Company?

The unaffiliated company itself cannot be a beneficial owner, but any individuals that exercise substantial control through the unaffiliated company must be reported as beneficial owners.

44. Is a Member of a Reporting Company’s Board of Directors Always a Beneficial Owner of the Reporting Company?

No. Whether a director meets any of the criteria for substantial control or ownership interest is a question that the reporting company must consider on a director-by-director basis.

45. Is a Reporting Company’s Designated “Partnership Representative” or “Tax Matters Partner” a Beneficial Owner?

It depends. Such an individual may qualify as a beneficial owner if they exercise substantial control over the reporting company or own or control at least 25 percent of the company’s ownership interests.

46. What Should a Reporting Company Report if Its Ownership is in Dispute?

The reporting company should report all individuals who exercise substantial control over the company, and all individuals who own or control, or have a claim to ownership or control of, at least 25 percent ownership interests in the company.

47. Who Does a Reporting Company Report as a Beneficial Owner if a Corporate Entity Owns or Controls 25 Percent or More of the Ownership Interests of the Reporting Company?

The reporting company should report the individuals who indirectly exercise substantial control over the reporting company or own or control at least 25 percent of the ownership interests in the reporting company through the corporate entity.

48. Who is the Beneficial Owner of a Homeowners Association?

A beneficial owner is any individual who exercises substantial control over a reporting company, or owns or controls at least 25 percent of the ownership interests of a reporting company.

49. Can Beneficial Owners Own or Control Reporting Companies Through Trusts?

Yes, beneficial owners can own or control a reporting company through trusts, either by exercising substantial control or by owning or controlling the ownership interests.

50. Who are a Reporting Company’s Beneficial Owners When Individuals Own or Control the Company Through a Trust?

A beneficial owner is any individual who exercises substantial control over a reporting company, or owns or controls at least 25 percent of a reporting company’s ownership interests. Specific trustees, beneficiaries, grantors, settlors, and other individuals with roles in a particular trust may be beneficial owners.

51. How Does a Reporting Company Report a Corporate Trustee as a Beneficial Owner?

The reporting company should determine whether any of the corporate trustee’s individual beneficial owners indirectly own or control at least 25 percent of the ownership interests of the reporting company through their ownership interests in the corporate trustee.

52. Who Should an Entity Fully or Partially Owned by an Indian Tribe Report as its Beneficial Owner(s)?

The answer depends on the nature of the entity owned by the Indian Tribe.

53. If One Spouse Has an Ownership Interest in a Reporting Company, Is the Other Spouse Also Considered a Beneficial Owner if the Reporting Company is Created or Registered in a Community Property State?

Possibly. If, applying community property State law, both spouses own or control at least 25 percent of the ownership interests of a reporting company, then both spouses should be reported to FinCEN as beneficial owners.

54. Who is a Company Applicant of a Reporting Company?

Only reporting companies created or registered on or after January 1, 2024, need to report their company applicants. A company that must report its company applicants will have only up to two individuals who could qualify as company applicants:

The individual who directly files the document that creates or registers the company; and
If more than one person is involved in the filing, the individual who is primarily responsible for directing or controlling the filing.

55. Which Reporting Companies are Required to Report Company Applicants?

A reporting company must report its company applicants only if it is either a:

Domestic reporting company created in the United States on or after January 1, 2024; or
Foreign reporting company first registered to do business in the United States on or after January 1, 2024.

56. Is My Accountant or Lawyer Considered a Company Applicant?

An accountant or lawyer could be a company applicant, depending on their role in filing the document that creates or registers a reporting company.

57. Can a Company Applicant Be Removed From a BOI Report if the Company Applicant No Longer Has a Relationship With the Reporting Company?

No. A company applicant may not be removed from a BOI report even if the company applicant no longer has a relationship with the reporting company.

58. The Company Applicants of a Reporting Company Include the Individual “Primarily Responsible for Directing the Filing of the Creation or Registration Document.” What Makes an Individual “Primarily Responsible” for Directing Such a Filing?

Consider who is responsible for making the decisions about the filing of the document, such as how the filing is managed, what content the document includes, and when and where the filing occurs.

59. Is a Third-Party Courier or Delivery Service Employee Who Only Delivers Documents That Create or Register a Reporting Company a Company Applicant?

No. A third-party courier or delivery service employee who only delivers documents to a secretary of state or similar office is not a company applicant.

60. If an Individual Used an Automated Incorporation Service, Such as Through a Website or Online Platform, to File the Creation or Registration Document for a Reporting Company, Who is the Company Applicant?

If a business formation service only provides software, online tools, or generally applicable written guidance, the employees of such services are not company applicants.

61. Will a Reporting Company Need to Report Any Other Information in Addition to Information About its Beneficial Owners?

Yes. The information that needs to be reported depends on when the company was created or registered.

If a reporting company is created or registered on or after January 1, 2024, the reporting company will need to report information about itself, its beneficial owners, and its company applicants.
If a reporting company was created or registered before January 1, 2024, the reporting company only needs to provide information about itself and its beneficial owners.

62. What Information Will a Reporting Company Have to Report About Itself?

A reporting company will have to report:

Its legal name;
Any trade names;
The current street address of its principal place of business;
Its jurisdiction of formation or registration; and
Its Taxpayer Identification Number.

63. What Information Will a Reporting Company Have to Report About its Beneficial Owners?

For each individual who is a beneficial owner, a reporting company will have to provide:

The individual’s name;
Date of birth;
Residential address; and
An identifying number from an acceptable identification document, and the name of the issuing state or jurisdiction of identification document.

The reporting company will also have to report an image of the identification document used to obtain the identifying number.

64. What Information Will a Reporting Company Have to Report About its Company Applicants?

For each individual who is a company applicant, a reporting company will have to provide:

The individual’s name;
Date of birth;
Address; and
An identifying number from an acceptable identification document, and the name of the issuing state or jurisdiction of identification document.

The reporting company will also have to report an image of the identification document used to obtain the identifying number.

65. What are Acceptable Forms of Identification That Will Meet the Reporting Requirements?

A non-expired U.S. driver’s license;
A non-expired identification document issued by a U.S. State or local government, or Indian Tribe;
A non-expired passport issued by the U.S. government; or
A non-expired passport issued by a foreign government (permitted only when an individual does not have one of the other three forms of identification listed above).
1. What is an example of a “non-expired identification document issued by a U.S. State or local government, or Indian Tribe”?
  
  A document issued specifically for use as proof of the holder’s identity.
2. Is a U.S. passport card an acceptable form of identification?
  
  Yes, a U.S. passport card is considered a type of passport issued by the U.S. government.

66. Is There a Requirement to Annually Report Beneficial Ownership Information?

No. There is no annual reporting requirement. Reporting companies must file an initial BOI report and updated or corrected BOI reports as needed.

67. Does a Reporting Company Have to Report Information About Its Parent or Subsidiary Companies?

No, though if a special reporting rule applies, the reporting company may report a parent company’s name instead of beneficial ownership information.

68. Can a Reporting Company Report a P.O. Box as Its Current Address?

No. The reporting company address must be a U.S. street address and cannot be a P.O. box.

69. Have I Met FinCEN’s BOI Reporting Obligation if I Filed a Form or Report That Provides Beneficial Ownership Information to a State Office, a Financial Institution, or the IRS?

No. Reporting companies must report beneficial ownership information directly to FinCEN.

70. If a Beneficial Owner or Company Applicant’s Acceptable Identification Document Does Not Include a Photograph for Religious Reasons, Will FinCEN Accept the Identification Document Without the Photograph?

Yes.

71. What Residential Address Should Be Reported if a Reporting Company Is Required to Report an Individual’s Residential Address, but That Individual Does Not Have a Permanent Residential Residence?

The residential address that is current at the time of filing should be reported to FinCEN.

72. What Address Should a Reporting Company Report if It Lacks a Principal Place of Business in the United States?

If a reporting company does not have a principal place of business in the United States, then the company must report to FinCEN as its address the primary location in the United States where it conducts business.

73. What Type of Tax Identification Number Should Be Reported by a Reporting Company That is Disregarded for U.S. Tax Purposes?

A disregarded entity must report beneficial ownership information (BOI) to FinCEN if it is a reporting company. Such a reporting company must provide one of the following types of taxpayer identification numbers (TINs) on its BOI report if it has been issued a TIN: an Employer Identification Number (EIN); a Social Security Number (SSN); or an Individual Taxpayer Identification Number (ITIN).

74. Are Reporting Companies Required to Report the Addresses of Beneficial Owners or Company Applicants That Participate in an Address Confidentiality Program (ACP)?

Reporting companies that are required to report a beneficial owner or company applicant registered with a State’s ACP should report to FinCEN the ACP address that the State provided to the individual.

75. For Each Beneficial Owner or Company Applicant a Company Is Required to Report, the Company Must Provide an Identifying Number From an Acceptable Identification Document as Well as an Image of the Identification Document Used to Obtain This Identifying Number. Does the Name on an Individual’s Acceptable Identification Document Need to Match the Individual’s Current Full Legal Name?

No. If the name on the identification document of a beneficial owner or company applicant does not match their current full legal name due to a recent legal name change, the individual’s current full legal name should be reported to FinCEN.

76. When Do I Have to File an Initial Beneficial Ownership Information Report with FinCEN?

If your company existed before January 1, 2024, it must file its initial beneficial ownership information report by January 1, 2025.

If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective.

If your company was created or registered on or after January 1, 2025, it must file its initial beneficial ownership information report within 30 calendar days after receiving actual or public notice that its creation or registration is effective.

77. Can a Parent Company File a Single BOI Report on Behalf of Its Group of Companies?

No. Any company that meets the definition of a reporting company and is not exempt is required to file its own BOI report.

78. How Can I Obtain a Tax Identification Number for a New Company Quickly So That I Can File an Initial Beneficial Ownership Information Report on Time?

The Internal Revenue Service (IRS) offers a free online application for an EIN, which is provided immediately upon submission of the application.

79. Should an Initial BOI Report Include Historical Beneficial Owners of a Reporting Company, or Only Beneficial Owners as of the Time of Filing?

An initial BOI report should only include the beneficial owners as of the time of the filing.

80. How Does a Company Created or Registered After January 1, 2024, Determine Its Date of Creation or Registration?

The date of creation or registration for a reporting company is the earlier of the date on which: (1) the reporting company receives actual notice that its creation (or registration) has become effective; or (2) a secretary of state or similar office first provides public notice.

81. A Company that Was Created or Registered Before January 1, 2024, and Was Exempt From the BOI Reporting Requirements Loses Its Exempt Status Between January 1, 2024, and January 1, 2025. How Long Does the Reporting Company Have to File Its Initial BOI Report?

Previously exempt entities that existed before 2024 and lose their exempt status in 2024 will receive the benefit of whichever of these two timeframes is longer: (1) the remaining days left in the one-year filing period for existing companies; or (2) the 30-calendar-day period for companies that lose their exempt status.

82. What Should I Do if Previously Reported Information Changes?

If there is any change to the required information about your company or its beneficial owners, your company must file an updated report no later than 30 days after the date of the change.

83. What Are Some Likely Triggers for Needing to Update a Beneficial Ownership Information Report?

The following are some examples of the changes that would require an updated beneficial ownership information report:

Any change to the information reported for the reporting company, such as registering a new business name.
A change in beneficial owners, such as a new CEO, or a sale that changes who meets the ownership interest threshold of 25 percent.
Any change to a beneficial owner’s name, address, or unique identifying number previously provided to FinCEN.

84. Is an Updated BOI Report Required When the Type of Ownership Interest a Beneficial Owner Has in a Reporting Company Changes?

No. A change to the type of ownership interest a beneficial owner has in a reporting company does not require the reporting company to file an updated BOI report because FinCEN does not require companies to report the type of interest.

85. If a Reporting Company Needs to Update One Piece of Information on a BOI Report, Such as Its Legal Name, Does the Reporting Company Have to Fill Out an Entire New BOI Report?

Updated BOI reports will require all fields to be submitted, including the updated pieces of information.

86. Can a Filer Submit a Late Updated BOI Report?

An updated BOI report can be submitted to FinCEN at any time. However, the reporting company is responsible for ensuring that updates are filed within 30 days of a change occurring.

87. If a Reporting Company Last Filed a “Newly Exempt Entity” BOI Report but Subsequently Loses Its Exempt Status, What Should It Do?

A reporting company should file an updated BOI report with FinCEN with the company’s current beneficial ownership information when it determines it no longer qualifies for an exemption.

88. What Should I Do if I Learn of an Inaccuracy in a Report?

If a beneficial ownership information report is inaccurate, your company must correct it no later than 30 days after the date your company became aware of the inaccuracy or had reason to know of it.

89. What Should a Reporting Company Do if it Becomes Exempt After Already Filing a Report?

If a reporting company filed a beneficial ownership information report but then becomes exempt from filing the report, the company should file an updated report indicating that it is no longer a reporting company.

90. What Happens if a Reporting Company Does Not Report Beneficial Ownership Information to FinCEN or Fails to Update or Correct the Information Within the Required Timeframe?

You could face civil and criminal penalties if you disregard your beneficial ownership information reporting obligations.

91. What Penalties Do Individuals Face for Violating BOI Reporting Requirements?

A person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. A person may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000.

92. Who Can Be Held Liable for Violating BOI Reporting Requirements?

Both individuals and corporate entities can be held liable for willful violations.

i. Can an individual who files a report on behalf of a reporting company be held liable?

Yes. An individual who willfully files a false or fraudulent beneficial ownership information report on a company’s behalf may be subject to the same civil and criminal penalties as the reporting company and its senior officers.
ii. Can a beneficial owner or company applicant be held liable for refusing to provide required information to a reporting company?

Yes.

93. Is a Reporting Company Responsible for Ensuring the Accuracy of the Information That it Reports to FinCEN, Even if the Reporting Company Obtains That Information From Another Party?

Yes. It is the responsibility of the reporting company to identify its beneficial owners and company applicants, and to report those individuals to FinCEN.

94. What Should a Reporting Company Do if a Beneficial Owner or Company Applicant Withholds Information?

Reporting companies are responsible for ensuring that they submit complete and accurate beneficial ownership information to FinCEN.

95. What Are the Criteria for the Tax-Exempt Entity Exemption From the Beneficial Ownership Information Reporting Requirement?

(1) The entity is an organization that is described in section 501(c) of the Internal Revenue Code of 1986 (Code) (determined without regard to section 508(a) of the Code) and exempt from tax under section 501(a) of the Code.
(2) The entity is an organization that is described in section 501(c) of the Code, and was exempt from tax under section 501(a) of the [Code](https://www.govinfo.gov/content/pkg/USCODE-2011-title26/pdf