Q&A of the Week September 27, 2023

Question

What does BOI mean? What is the upcoming BOI reporting change?

Answer

BOI stands for Beneficial Ownership Information. Beneficial Owners are individuals who directly or indirectly own or control at least 25% of a company registered to do business in the United States.

Beginning January 1, 2024, the Corporate Transparency Act (CTA) has mandated that most U.S. entities must disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN.) The reporting requirement includes the name, birthdate, and address of each beneficial owner of a company. The initial report is due by January 1, 2025.

The goal of this reporting requirement is to stop anyone who would use an anonymous shell company or other corporate structure to hide illegal gains.