Read time: 3 minutes

Effective Jan. 1, 2024, a new reporting requirement requires millions of entities to electronically file a Beneficial Ownership Information (BOI) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Every LLC, partnership or corporate owner needs to know about this reporting requirement, because noncompliance could result in severe penalties.

Who Is Required to File a BOI Report?

• Any domestic and foreign entities that have filed formation or registration documents with a U.S. state (or Indian tribe) unless they meet one of 23 exceptions. The filing of this report is required for any entity that is a limited liability company, limited partnership, general partnership, S corporation, C corporation or business trust. It is important to note that the filing requirement includes limited liability companies that have just one member and are sole proprietorship, rental activities or farm entities.

Who Is Exempt From Filing?

• Large operating entities that meet the following criteria:

• Charitable organizations
• Businesses that are heavily regulated by the federal government, including financial, insurance and accounting firms, banks and credit unions, most publicly traded companies and other entities subject to similar registration and regulations by other federal laws

When Must Companies File?

• Existing entities (created/registered before Jan. 1, 2024) must file by Jan. 1, 2025.
• New entities (created/registered after Jan. 1, 2024) must file within 90 days of business registration.
• Subsequent changes or corrections to previously reported information must be filed within 30 days.

What Information Needs to Be Reported?

• In addition to general business information, each company must report details on its beneficial owners, including name, date of birth, address and a unique identifying number such as a driver’s license, passport, etc., with an image of such document.

Who Is Considered a Beneficial Owner?

• Anyone who owns or controls 25% or more of the ownership interests or directly or indirectly exercises substantial control over the entity.

What Are the Penalties for Noncompliance?

• Civil penalties include $500 per day for as long as a violation continues.
• Criminal penalties include a $10,000 fine and/or up to two years of imprisonment.

We recommend that you contact your corporate or business attorney regarding your potential filing requirements for this informational report. Additional information and filing updates can also be found on the FinCEN website at www.fincen.gov/boi.

This article is provided for informational and educational purposes only and should not be interpreted as specific advice of any kind. The information contained herein has been obtained from sources believed to be reliable, but we do not warrant the accuracy of the information. Please consult with a qualified professional regarding your personal circumstances.

Mariner is the marketing name for the financial services businesses of Mariner Wealth Advisors, LLC and its subsidiaries. Investment advisory services are provided through the brands Mariner Wealth, Mariner Independent, Mariner Institutional, Mariner Ultra, and Mariner Workplace, each of which is a business name of the registered investment advisory entities of Mariner. For additional information about each of the registered investment advisory entities of Mariner, including fees and services, please contact Mariner or refer to each entity’s Form ADV Part 2A, which is available on the Investment Adviser Public Disclosure website. Registration of an investment adviser does not imply a certain level of skill or training.