Essential Knowledge on Beneficial Ownership for Writers: An Overview
Foreign entities registered to do business in any U.S. State or Tribal jurisdiction have a new deadline for reporting Beneficial Ownership Information (BOI).
Deadlines for BOI Reporting
- Foreign entities that became reporting companies prior to March 26, 2025, must file their initial BOI report no later than April 25, 2025.
- Foreign entities that become reporting companies on or after March 26, 2025, must file their initial BOI report within 30 calendar days after receiving notice that their registration is effective.
Key Requirements for BOI Report
The report requires the following information for each beneficial owner:
- Full legal name
- Date of birth
- Residential address
- A unique identifying number from an acceptable identification document (such as a passport or driver’s license)
Who is Impacted (and Who's Not)
Under the Corporate Transparency Act (CTA), U.S. domestic companies and persons are no longer required to report BOI as of the interim final rule issued by FinCEN on March 21, 2025. Only foreign entities registered to do business in the U.S. remain obligated to file, unless exempt. Sole proprietor authors in the United States are also not impacted by BOI.
How to File Your BOI Report
Reports cannot be filed using tax software like Drake Tax but must be submitted directly through the FinCEN BOI website. Creating a FinCEN ID can simplify the reporting process.
Penalty for Noncompliance
Violating BOI reporting requirements could result in up to two years of federal prison and a $10,000 fine. If one willfully ignores the BOI reporting rules, they could face a daily fine of $500 (currently $591).
Additional Details
- The reporting is not annual, but entities must update the BOI report within 30 days of any changes in their beneficial ownership information.
- There is a temporary enforcement pause affecting some U.S. domestic entities due to recent court rulings, but foreign reporting companies remain subject to the filing deadlines.
Resources
- A 5-minute video is available to guide you through the entire BOI reporting process step by step.
- FinCEN's FAQ section provides more information to confirm specific situations.
In summary, for foreign entities registered in the U.S., the initial BOI report deadline is April 25, 2025, for those registered before March 26, 2025, and 30 days post-notification for registrations after that date, with submission required via the FinCEN website containing specific owner details as mandated by the CTA. The purpose of beneficial ownership information is to show who's really in charge of a company. When the time comes to file, you're ready. There is no filing fee, and no attorney or certified accountant is needed.
- Foreign entities registered to do business in the U.S. should ensure they meet the BOI reporting deadlines, as failing to comply could lead to penalties such as fines and imprisonment.
- The filing of Beneficial Ownership Information (BOI) reports by foreign entities registered in the U.S. is a crucial step in business transparency, as it provides insight into who is actually in charge of the company.
