If this is your first time hearing about this, or if you’ve heard of it but haven’t taken action yet, keep reading. For me, it all started through word of mouth about an important task I needed to complete for my LLC in 2024. At first, I didn’t pay much attention—there’s so much chatter out there. But then, I started receiving mail from companies offering to handle it for a fee.
Since I like to handle things on my own, I decided to look into it, and to my surprise, the process was incredibly simple. That’s why I wanted to share this with my fellow nail technicians and anyone else with an LLC—it’s easier than it seems!
What is BOI?
Beneficial ownership information refers to data identifying the individuals who ultimately own, control, or benefit from an entity (like a company or trust), even if that ownership is held indirectly through intermediaries. A beneficial owner is someone who, directly or indirectly, has significant influence over the entity, typically through shares, voting rights, or contractual agreements.
Why is Beneficial Ownership Information Important?
1. Transparency: It helps uncover the true owners behind companies or trusts, preventing the use of shell companies for illicit purposes.
2. Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF): It aids regulators in identifying suspicious activities and preventing financial crimes.
3. Tax Compliance: Authorities can verify if companies and individuals are meeting their tax obligations.
4. Prevention of Corruption: Public access to beneficial ownership helps expose conflicts of interest, fraud, and corruption.
Key Elements of Beneficial Ownership Information
- Identity of the beneficial owner(s): Name, date of birth, and nationality.
- Ownership percentage: The level of control or shares held, usually focusing on those with more than 25% ownership.
- Nature of control: Whether the person has direct or indirect control through ownership, voting rights, or agreements.
How to report BOI?
To report beneficial ownership information, follow these general steps. However, specific requirements will vary depending on your country's laws and the authority or registry involved.
Complete the Online Submission
Online portal: I went directly through https://boiefiling.fincen.gov and submit documentation. The documents I had to submit was my drivers license, address and EIN number for my LLC. Once you submit your report, it's important to maintain records by keeping copies of all reports and supporting documentation for compliance and auditing purposes.
Penalties for Non-Compliance
Failure to report or providing false information can result in fines, legal action, or even criminal liability. Stay up-to-date with regulations to ensure compliance.
I’ll be honest— I submitted mine past the deadline by mistake, but thankfully, I wasn’t penalized. If you’re reading this and haven’t completed yours yet, don’t stress. This is a new requirement from the government, so there’s a good chance they’ll be understanding.
Also, be careful with companies offering to charge you for this process. It’s simple, free, and takes less than 10 minutes to complete on your own.
Good luck, and keep your business thriving!
Comments