Many small businesses are having to deal with the difficulty and complexities of understanding Beneficial Ownership Information Reporting (BOIR). Part of this complexity is understanding who can file your BOIR, who has to file a BOIR and where you can file your BOIR. In this article we will break down Who has to file a Beneficial Ownership Information Report, and where you can file.
Beginning this year (2024) the Corporate Transparency Act (CTA) now requires small businesses to file Beneficial Ownership Information Reports. Ensuring you file your BOIR will keep your company from fines and other severe penalties. For businesses that need to file this report you may be asking who can actually file your BOIR? Simply put beneficial owners, company applicants, and authorized representatives (CPA, filing services, etc) can file your BOIR.
1) Companies and Corporations: Domestic and foreign entities registered to do business are required to file BOIRs. This includes corporations:
2) Beneficial Owners: Individuals with direct or indirect ownership or control of a significant portion of the entity—often defined as 25% or more—must be reported. These individuals can also file the reports themselves.
3) Company Applicants: Companies often authorize individuals such as officers, legal representatives, or compliance officers to file on their behalf. This delegation helps ensure that the filing process is handled by those with the appropriate knowledge and authority.
4) Authorized Representatives: Companies can rely on their trusted professional services:
Regardless if a small business files their BOIR directly with FinCen or they utilize a compliance professional to file, they are required to continue to update their report to ensure its accuracy when beneficial ownership information changes such as addresses or documents.
For CPAs, law firms, bookkeepers, and filing services, managing BOIRs for multiple clients can be a significant task. These professionals play a crucial role in ensuring that businesses remain compliant with regulatory requirements. Here’s how these services can efficiently handle BOIR filings:
Centralized Data Management: ComplyBOI offers a centralized platform where all client data can be stored securely. This makes it easier for CPAs and other professionals to access and update information as needed.
Automated Reminders and Updates: Staying on top compliance requirements is critical. ComplyBOI provides automated reminders and updates branded with your company information, helping clients manage new and updated reports.
User-Friendly Interface: The software’s intuitive interface simplifies the data entry process, reducing the likelihood of errors. This is particularly beneficial for small businesses that may not have extensive compliance departments.
Secure Document Storage: Security is a top priority when handling sensitive information. ComplyBOI ensures that all documents are stored securely, protecting client data from unauthorized access.
Client Collaboration: The platform allows for seamless collaboration between CPAs, law firms, bookkeepers, and their clients. This collaborative approach ensures that all parties are on the same page and that the information being reported is accurate and up-to-date.
White-Label Service: ComplyBOI takes our BOIR compliance software and brands it with all your company information. This allows seamless interaction between your client and your business.
For small businesses, working with professionals who use ComplyBOI can provide peace of mind. These businesses often lack the resources to manage compliance internally. By leveraging the expertise of CPAs and other services equipped with specialized software, small businesses can ensure they meet their regulatory obligations without diverting significant resources from their core operations.
For many small businesses, navigating compliance requirements is stressful and confusing. That being said all small businesses owners should be aware of the Form 4022 scam that is demanding money from small businesses to stay compliant. Ream more about this scam in our “Form 4022 Corporate Transparency Act Scam” article.
File client BOIR's worry free with ComplyBOI's White-Label BOIR filing software. Let your clients file, or file yourself!