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As the deadline for filing Beneficial Ownership Information (BOI) reports quickly approaches, it’s critical for businesses to ensure compliance with the Corporate Transparency Act (CTA). With less than 30 days left to file BOI reports, here are key steps you should take to prepare and file accurately and on time.
Understand the Reporting Requirements
First, make sure you fully understand the reporting requirements under the CTA. The CTA mandates that certain businesses must report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners include individuals who:
- Own 25% or more of the company.
- Exercise substantial control over the company.
The required information to report about beneficial owners includes:
- Full legal name
- Date of birth
- Residential or business address
- Unique identifying number from an acceptable identification document (e.g., passport, driver’s license)
- Image of the identifying document
Conduct a Beneficial Ownership Information Review
To ensure accurate reporting, conduct a thorough review to identify all beneficial owners of your company. This involves:
- Reviewing articles of organization/incorporation, operating agreement, By-Laws and any other documents that illustrate the individuals with ownership or control.
- Consulting with legal and compliance teams.
- Documenting all findings accurately.
Gather Required Information
Collect the necessary information for each beneficial owner and the entity itself. This includes obtaining copies of identification documents and verifying the details provided. For the entity, make sure you have the tax ID, principal business address, any DBAs or trade names, and the jurisdiction of formation. Ensure all information is up-to-date and complete.
Prepare for Filing
Before submitting your BOI report, make sure to:
- Review all information for accuracy.
- Ensure compliance with FinCEN’s submission guidelines.
- Address any discrepancies or missing information.
File BOI Reports
Submit your BOI report through the FinCEN reporting system or a trusted BOI reporting software. Keep a record of the filing transcript for future reference and consider sharing with your CPA or lawyer. If you encounter any issues during the submission process, consult FinCEN’s guidelines or seek assistance from legal or compliance experts.
Stay Updated
After filing your BOI report, stay informed about any updates or changes to the reporting requirements. FinCEN may release additional guidance or amendments, so it’s essential to remain compliant with the latest regulations. Don’t forget to file any updated BOI reports if any information changes about the entity or its owners. Changes must be reported within 30 days.
Conclusion
With less than a month left to file BOI reports, it’s important to take these steps to ensure timely and accurate submission. Understanding the requirements, conducting a thorough review, using compliance tools, and staying updated will help you meet the deadline and avoid potential penalties.
