🚨 Important Update: Beneficial Ownership Reporting Temporarily Halted. A court-ordered injunction has paused the collection of Beneficial Ownership Information (BOIR). The Department of Justice has filed a formal appeal with the Fifth Circuit. We are not collecting BOIR at this time.

🔔 Stay Informed: Sign up to be notified when or if the injunction is overturned and the mandate to report your BOIR resumes.

BOIR

April 10, 2024

Understanding BOIR Reporting Requirements and Compliance for Security Consulting Firms

Wondering if your business in the Security Consulting Firm needs to file a Beneficial Ownership Information Report (BOIR)? Missing this crucial requirement could result in serious penalties. Find out if your industry is on the list and what steps you need to take to stay compliant.

Do Business Plan Consulting Service need to file a beneficial ownership information report

3 Key Takeaways:

  • Mandatory BOIR Filing for LLCs and Corporations:
  • Risks of Non-Compliance: Failing to file a BOIR can result in significant financial and legal consequences, including civil and criminal penalties.
  • Legal Protection Through Incorporation:

As professionals in the Security Consulting Firm field, understanding and complying with BOIR Reporting Requirements is crucial for the success and reputation of your business. Failure to adhere to these regulations can result in hefty fines, legal consequences, and damage to your firm’s credibility. In this blog, we will delve into the importance of BOIR Reporting Requirements and how they impact your compliance and business operations.

Readers will learn the ins and outs of BOIR Reporting Requirements, including what information needs to be reported, who is responsible for reporting, and the consequences of non-compliance. By gaining a thorough understanding of these regulations, security consulting firms can ensure they are meeting their legal obligations and protecting their business from potential risks. Stay tuned as we explore the key aspects of BOIR Reporting Requirements and provide valuable insights for navigating this complex landscape.

What is a BOIR?

A Beneficial Ownership Information Report (BOIR) is a document that identifies the individuals who ultimately own or control a company. It is now a requirement for most US companies to file a BOIR under the Corporate Transparency Act, which aims to increase transparency and combat money laundering and other illicit activities. Failure to comply with this new regulation can result in significant fines and legal penalties for non-compliant businesses.

For those in the Security Consulting Firm profession, filing a BOIR is particularly relevant as many individuals who start such firms do so by incorporating with an LLC or Corporation. This means that they would be required to disclose their beneficial owners in order to comply with the law. Just as security consultants help protect their clients from potential threats, filing a BOIR helps protect businesses from potential legal risks by ensuring compliance with the Corporate Transparency Act. By taking the necessary steps to meet this requirement, security consulting firms can avoid fines and legal penalties, allowing them to focus on providing top-notch security services to their clients.

CA

 

Penalties for Failing to File a BOIR

Failing to file a Beneficial Ownership Information Report (BOIR) can result in severe consequences:

Civil Penalties

Entities that do not file a BOIR may face fines of up to $500 per day for each day the report is not submitted. These penalties can accumulate quickly, potentially resulting in significant financial burdens for non-compliant businesses.

Criminal Penalties

Willful non-compliance or providing false information can lead to criminal charges. These may include:

  • Fines of up to $10,000
  • Imprisonment for up to two years

Correction Period

FinCEN may waive penalties for mistakes or omissions that are corrected within 90 days of the original report filing deadline. However, it’s uncertain how aggressively penalties will be assessed for late reports, missed deadlines, or incorrect information disclosures.


Discover the game-changing strategies top entrepreneurs use to leave their competitors in the dust—don’t miss out on these 7 killer secrets to skyrocketing your business!

Unlock the insider tips and tools top start-ups and businesses are using to dominate their industries


Why Choose FinCEN BOI Filing for Your BOIR Needs?

That’s where we come in. At FinCEN BOI Filing, we’ve developed a user-friendly submission form that makes filing your BOIR quick and hassle-free. Our intuitive interface allows you to complete the filing process in just minutes, ensuring that you remain compliant without the stress.

Our service prioritizes your security. We use a secure connection to submit your BOIR directly, ensuring that none of your sensitive data is stored. Unlike many competitors who rely on manual entry—where your information is handled by their employees before being submitted to FinCEN—our automated process minimizes the risk of errors and enhances data security, giving you peace of mind.

With FinCEN BOI Filing, you can trust that your BOIR will be submitted efficiently and securely, leaving you free to focus on what matters most—running your business. Don’t let the complexities of BOIR compliance slow you down. Let us handle the filing, so you can stay compliant and avoid costly penalties.

Not Incorporated Yet? Discover Why You Should and What You Need to Know

As a Security Consulting Firm, incorporating your business isn’t just about paperwork and formalities – it’s a powerful way to protect yourself and your venture. Whether you’re a seasoned entrepreneur or just starting out, understanding these benefits can be crucial for your business’s future. By incorporating, you can limit your personal liability and separate your personal assets from your business assets, providing an added layer of protection for your Security Consulting Firm.

Creating a Legal Barrier

When you incorporate your Security Consulting Firm, you are taking a crucial step in protecting your personal assets from potential business liabilities. By creating a separate legal entity, you are establishing a legal shield that can safeguard your personal finances in the event of a lawsuit or debt accumulation that your business may face. In a sole proprietorship, your personal savings and even your home could be at risk if creditors come after you. However, with a corporation, only the company’s assets are vulnerable, leaving your personal assets untouched.

This legal protection provided by incorporation is essential for Security Consulting Firms, as it ensures that your personal liability is limited to the assets of the business. This separation between your personal and business finances can provide peace of mind and security, allowing you to focus on growing your firm without the fear of losing your personal assets. By understanding the benefits of incorporating your Security Consulting Firm, you can take proactive steps to safeguard your financial future and protect yourself from potential risks associated with running a business.

Protecting Your Privacy and Shielding Your Identity

By incorporating your Security Consulting Firm, you can add an extra layer of privacy by keeping your personal information out of public records. When you form a corporation or LLC, your business becomes its own legal entity separate from you as the owner. This means that in many states, only the name and address of the registered agent and directors/officers need to be made public, not your personal information as a shareholder or member.

States like Wyoming, Delaware, and New Mexico go even further by allowing for anonymous LLCs, where owner information remains completely confidential. Utilizing a registered agent service can also help to further obscure your identity and personal details. While not a foolproof method, incorporating your Security Consulting Firm can be a valuable tool for maintaining your privacy and safeguarding your personal information from public view.

Incorporating your business can provide a level of privacy by keeping much of your personal information out of public records, helping to maintain a degree of anonymity. However, it’s important to recognize that this privacy has its limits and does not eliminate all legal disclosure requirements. Under the Corporate Transparency Act (CTA), most new and existing small businesses are required to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN), identifying the individuals who ultimately own or control the business.

This BOI report is mandatory for most corporations, LLCs, and other entities created by filing with a secretary of state. The information provided is not public and is stored in a secure, non-public database, accessible only to authorized government authorities for law enforcement, national security, or intelligence purposes. While financial institutions may access this information with the company’s consent for customer due diligence, the data remains highly secure and is not available to the general public, ensuring that incorporation still offers significant privacy benefits.

Our Top Recommendation for Incorporating and Using Registered Agents

Northwest Registered Agent isn’t just another business formation service – it’s your secret weapon for launching a successful, protected enterprise. Here’s why they stand out:

Expert Entity Selection Guidance – Northwest offers personalized advice to help you select the perfect business entity, whether it’s an LLC, corporation, or another structure. Their expertise streamlines the formation process, allowing you to focus on what truly matters – growing your business.

Unmatched Privacy Protection –  Northwest is a leader in its unwavering commitment to privacy and asset protection. They go above and beyond by:

  • Keeping ownership details confidential
  • Providing a business address for official correspondence
  • Keeping your personal address off public records

This level of privacy is invaluable for entrepreneurs who want to maintain a low profile and clearly separate their personal and business identities.

Nationwide Expertise You Can Trust With over 20 years of experience, Northwest offers a reliable, comprehensive solution for business formation and registered agent services. Their commitment to transparency, privacy, and exceptional support makes them a trusted partner for entrepreneurs across the country.

That’s why we confidently recommend Northwest Registered Agent to all of our clients. When you’re ready to launch your business with confidence and protection, Northwest has you covered.

Enhancing Security Measures: The Importance of BOIR Reporting in Industry Security Consulting Firm

We understand that as a Security Consulting Firm, your main priority may be to simply comply with the law rather than demonstrate ethical standards or transparency. However, it is crucial to remember that filing a Beneficial Ownership Information Report (BOIR) is not just a legal requirement, but also a way to ensure the security and integrity of your business. By providing accurate and up-to-date information about the individuals who ultimately own or control your company, you are helping to prevent money laundering, terrorist financing, and other illicit activities. So, don’t wait any longer – file your BOIR today by clicking on the link below.

File Your Beneficial Ownership Information Report

For those who haven’t already incorporated, it is important to consider the legal benefits of doing so. By incorporating your Security Consulting Firm, you can protect your personal assets from business liabilities and lawsuits. Additionally, incorporating can help maintain your privacy by keeping your personal information separate from your business records. So, take the necessary steps to protect yourself and your business by incorporating today.

Frequently Asked Questions

Have questions about the Beneficial Ownership Filing process? Check out FinCEN BOI Filing's frequently asked questions for the answer.

A Beneficial Ownership Information (BOI) report is a filing required by FinCEN to disclose key details about individuals who own or control a company, ensuring compliance with anti-money laundering laws and enhancing corporate transparency. Filing a BOI takes 5-10 minutes and can be done here

The Corporate Transparency Act (CTA) reporting requirements take effect on January 1, 2024. Business entities established before this date have until January 1, 2025, to meet the reporting obligations.

Yes, failing to file a BOI report can result in substantial penalties, including hefty fines and potential legal repercussions. Learn more about the BOI deadlines and non-filing BOI penalties.

Filing a BOI takes about 5-10 minutes and can be done here. If you’re not sure if you are required to file, you can take the one minute BOI Eligibility Quiz.

A beneficial owner is any individual who either:

  1. Directly or indirectly exercises substantial control over the reporting company, or
  2. Directly or indirectly owns or controls 25% or more of the company’s ownership interests.

Substantial control includes the power to direct, influence, or determine significant decisions of the company. This may involve senior officers or individuals with authority to appoint or remove senior officers or a majority of the board.

Ownership interests encompass rights that establish ownership in the company, ranging from basic stock shares to more complex financial instruments.

For more details on “substantial control” and “ownership interests,” refer to our guide on complex ownership structures.

We submit reports through a secure API connection directly with FinCEN’s Beneficial Ownership Secure System (BOSS). This integration allows for seamless and efficient filing of Beneficial Ownership Information reports, reducing the time it takes to complete and submit a report.

Our user-friendly form is designed to minimize errors by guiding you through the process with clear prompts and checks. Additionally, by using the secure API connection, we ensure that your data remains private and protected throughout the submission process, adhering to the highest security standards.

The beneficial ownership information will be accessible only to authorized government agencies, such as law enforcement and regulatory authorities, for the purpose of combating money laundering, fraud, and other financial crimes.

This data is not publicly available and is used solely for compliance with legal and regulatory requirements. Only those with a legitimate need, as defined by the law, will be able to access this information to ensure transparency and uphold national security.

You can read more about keeping your personal information private when filing your BOIR.

No, you do not need to file a Beneficial Ownership Information Report (BOIR) annually. However, you are required to update and file a new report if there are any changes to the beneficial ownership or company applicant information, such as changes in ownership or control. The report must be filed when there are material updates, but there is no annual filing requirement unless changes occur.

Type of Report
The reporting company must specify the type of report being submitted: an initial report, a correction of a prior report, or an update to a prior report.


Company Information
The reporting company must provide the following details:

  • Legal Name: The official name of the company.
  • Trade Name: Any “doing business as” (DBA) names used by the company.
  • Address: The current street address of its principal place of business. If the principal place of business is outside the U.S., the company must report the address from which it conducts business in the U.S.
  • Taxpayer Identification Number (TIN): This includes an EIN, SSN, or ITIN, as appropriate.

Beneficial Owner Information
The reporting company must provide the following details for each beneficial owner:

  • Legal Name: The individual’s full legal name.
  • Date of Birth: The individual’s date of birth.
  • Address: The individual’s residential street address.
  • Identification Document: A unique identifying number from an acceptable identification document, the issuing state or jurisdiction, and an image of the document.

Company Applicant Information (if required)
For reporting companies created on or after January 1, 2024, the following information about the company applicant must be provided:

  • Address: The individual’s residential street address. If the applicant forms or registers companies as part of their business (e.g., paralegals), the business address can be used. The address does not need to be in the U.S.
  • Identification Document: A unique identifying number from an acceptable identification document, the issuing state or jurisdiction, and an image of the document.

Most businesses are required to file a BOI report, with exceptions for 23 specific categories, such as publicly traded companies and other regulated entities. To learn more about these exemptions and determine if your business needs to file, read this article.

 
  • Companies formed or registered before January 1, 2024, must file an initial BOI report by January 1, 2025.
  • Companies formed or registered in 2024 must file a BOI report within 90 days of receiving actual or public notice of their formation or registration.
  • Companies formed or registered on or after January 1, 2025, must file their initial BOI report within 30 days of receiving actual or public notice.

You can learn more about the BOI deadlines here.

Acceptable identification documents include the following:

  • A valid, unexpired driver’s license issued by a U.S. state or territory.
  • A valid, unexpired ID card issued by a U.S. state, local government, or Indian Tribe for identification purposes.
  • A valid, unexpired passport issued by the U.S. government.
  • If none of the above is available, a valid, unexpired passport issued by a foreign government may be used instead.

An identification document must be collected for each beneficial owner.

For companies formed after 2023, an ID must also be provided for the company applicant.

A company applicant is the individual responsible for creating or registering a company. Specifically, it includes:

  1. The individual who directly files the document to form or register the entity with the relevant state or tribal authority, such as the Secretary of State.
  2. The individual primarily responsible for directing or controlling the filing process, even if they are not the one submitting it.

For companies formed or registered after January 1, 2024, this information must be reported as part of the Beneficial Ownership Information Report (BOIR).

Most individuals will be able to submit their Beneficial Ownership Information reports directly without needing assistance from attorneys or CPAs. Our streamlined, user-friendly form guides you through the process, making it simple to provide the required information accurately and efficiently.

Yes, a company is required to update or correct its beneficial ownership information whenever it is no longer accurate. If there are any changes to the company’s beneficial owners or company applicant information, such as a change in ownership percentages or control, the company must file an updated report with the correct details. This ensures that the information on record remains accurate and compliant with the reporting requirements, helping to maintain transparency and reduce the risk of misuse.

After submitting your BOIR through our website, you will receive an email containing a unique submission process ID, confirming that your submission has been successfully received.

The email will also notify you once FinCEN has accepted your report. In rare instances, if your submission is rejected, we will inform you of the reason and provide a link to resubmit the corrected information.

You can track the status of all your submissions through our BOIR tracking page, ensuring you stay updated on the progress of your report. Most submission have a confirmed acceptance within a few minutes of submission. 

 

 

 

Beneficial Ownership information Reporting Injunction

Corporate Transparency Act Enforcement Temporarily Halted: What Businesses Need to Know

Business Law, Current Updates

December 10, 2024

Illustration of business entity Beneficial Ownership Filing

Who is Exempt from Filing a Beneficial Ownership Information (BOI) Report and Why?

Blog

September 4, 2024

Do rental property owners need to file a beneficial ownership information report?

Do Rental Property Owners Need to File a Beneficial Ownership Information Report for Their LLC?

BOI Report, Real Estate Regulations

September 3, 2024

Scroll to Top
  • Securities reporting issuer
  • Governmental authority
  • Bank
  • Credit union
  • Depository institution holding company
  • Money services business
  • Broker or dealer in securities
  • Securities exchange or clearing agency
  • Other Exchange Act registered entity
  • Investment company or investment adviser
  • Venture capital fund adviser
  • Insurance company
  • State-licensed insurance producer
  • Commodity Exchange Act registered entity
  • Accounting firm
  • Public utility
  • Financial market utility
  • Pooled investment vehicle
  • Tax-exempt entity
  • Entity assisting a tax-exempt entity
  • Large operating company
  • Subsidiary of certain exempt entities
  • Inactive entity