By: Amber Ewald
Under the Corporate Transparency Act (CTA), businesses are legally required to file Beneficial Ownership Information (BOI) reports. These reports provide transparency regarding the individuals who own or control a business, aiding regulatory authorities in tracking the true owners behind legal entities. Compliance with this requirement is intended to help businesses avoid legal penalties and fines, support risk management, and foster trust with customers and partners. Additionally, adhering to these regulations aligns businesses with global standards for financial transparency.
Filing a BOI report is not a one-time requirement. A business must file an initial BOI report upon its formation. Subsequent updates are necessary if there are changes to addresses or ownership, such as the addition of new shareholders or members, or alterations in ownership percentages. Periodic updates are also mandated by the CTA, even if no changes have occurred. Compliance audits, mergers, acquisitions, or significant corporate restructuring also necessitate an updated BOI report.
For LLCs established before 2024, the initial BOI report must be filed by January 1, 2025. LLCs created in 2024 are required to file a BOI report within 90 days of their formation date. For entities formed on or after January 1, 2025, the BOI report must be filed within 30 days of formation. Keeping beneficial ownership information current and accurate is crucial for legal and regulatory compliance. As these rules evolve, staying informed is essential to ensure ongoing compliance.
Have questions about your BOI report? Contact Harbour Business Law.
____________________________________________________________
Don’t have a business attorney? Get in touch with our team by emailing Info@harbourbusinesslaw.com.
____________________________________________________________
This Blog was written by Harbour Business Law Legal Assistant, Amber Ewald.
DISCLAIMER: This blog is for educational purposes only and does not offer nor substitute legal advice. This blog does not establish an attorney-client relationship and is not for advertising or solicitation purposes. Any of the content contained herein shall not be used to make any decision without first consulting an attorney. The hiring of an attorney is an important decision not to be based on advertisements or blogs. Harbour Business Law expressly disclaims any and all liability in regard to any actions, or lack thereof, based on any contents of this blog.
