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Pending continued legal developments on the status of the required Beneficial Ownership Information Reporting (BOIR), we recommend that you remain fully prepared for compliance.
Key steps to consider as part of preparation to file your BOIR include the following:
Obtain FinCEN IDs for Key Owners
If you haven’t already obtained FinCEN IDs for key beneficial owners, especially those that hold multiple entities, you may want to consider expediting obtaining these IDs. Obtaining a FinCEN ID can streamline reporting and also increase privacy for owners.
Engagement Management
For professionals and advisors, it is imperative to have a well-defined engagement letter or other contract with your client that clearly defines the scope of your work and your responsibilities.
Obtain and Document Key Entity Information
The designation of a “Beneficial Owner” includes both persons with direct or indirect ownership or control of more than 25% of an entity, or certain other persons with substantial control over the entity. Prior to filing, you should have a complete file documenting ownership and control persons of the business, including organization charts, governing legal documents, and ownership tables.
Account for Key Complexities
Make sure to account for additional key complexities when filing your BOIR, including:
- Community property rules
- Tiered ownership structures
- Complex ownership structures (complex capital structures, waterfall equity calculations, etc.)
- Series LLCs
- Trusts
- Ownership or control persons that are unresponsive to data requests
- General durable power of attorney
Obtain Beneficial Owner Information
Included with each report will be either the FinCEN ID number for each Beneficial Owner, or the following information:
- Full legal name
- Date of Birth
- Residential Address
- A unique identifying number from an acceptable identification document (e.g. passport, driver’s license)
- An image of the identification document
File Your BOIR
You have two primary options for filing a FinCEN Beneficial Ownership Information Report:
- File directly with FinCEN
- File with a third-party software provider like Secure Compliance. Benefits can include:
- Secure data retention pending resolution of the BOIR legal battles
- Automated data collection
- Data entry speed and ability to link single owners across multiple entities
- Streamlined bulk uploads
- Expert support
Monitor for Developments
Additional developments are expected in the weeks to come, including FinCEN guidance and possibly changes to the law by a new Congress next year.
