Background on Beneficial Ownership Information (BOI) Reports

The Corporate Transparency Act (CTA) was enacted in 2021 and requires most new and existing businesses to file a Beneficial Ownership Information report with the Financial Crimes Enforcement Network (FinCEN).

The BOI report requires a reporting company to report information on the company’s beneficial owners, which includes any individual who either directly or indirectly exercises substantial control over the company or owns at least 25% of the company’s ownership interests.

The primary objective of these reports is to increase transparency and prevent the misuse of entities for illicit financial activity.

Sample BOI Report for a U.S. Single-Member LLC

This post includes a video tutorial with a step-by-step guide on completing the initial BOI report in PDF and submitting it through the FinCEN website.

Sample Fact Pattern. John Doe is a citizen and resident of the United Kingdom. John lives and works full-time in London, U.K. John opened a limited liability company (LLC) in Wyoming on March 1, 2024, and owns 100% of the LLC units. The entity is, by default, a single-member disregarded LLC for federal tax purposes. John files Form SS-4 (Application for EIN) to apply for the LLC’s EIN. John must file his initial BOI report to report his information as the company applicant and the beneficial owner.

Information to be Submitted

Details on the Reporting Company.

  • The full legal name of the entity
  • Tax identification number
  • Jurisdiction of Formation
  • Current business address

Details on the Company Applicant. The company applicant is the individual who files the Articles of Organization with the state.

  • Full legal name and date of birth
  • Current address
  • Form of identification & issuing jurisdiction
  • Attach a scanned copy of the individual’s ID

Details on the Beneficial Owners. The beneficial owners include all individuals who own 25% or more of the company’s equity or exercise substantial control over the reporting company.

  • Full legal name and date of birth
  • Current address
  • Form of identification & issuing jurisdiction
  • Attach a scanned copy of the individual’s ID

Finalize and Submit the Return

Once the user enters all required information, the user clicks the “validate” button and then “finalize” to lock in the values.

When are Updated Reports Required?

The BOI filing is not an annual filing requirement. Once the reporting company submits its initial return, it does not have to resubmit the same information each year.

However, an updated BOI report will be required if any of the information changes in the future. In the example above, assume that John changes his residential address and moves to another city. In that case, John must file an updated BOI report to notify FinCEN of his address change. A reporting company must generally file an updated report within 30 days of the change to stay compliant.

An updated report would also be required if there were any changes to the company’s beneficial owners, such as adding new equity owners or persons who exercise substantial control over the company.

Final Thoughts

Filing a BOI report with FinCEN may feel like another tedious administrative task, but it is a required filing under federal law. Failure to file the BOI reports in a timely manner can subject the reporting company to a civil penalty of up to $500 per day the filing is late ($591 per day for 2025).