How do I find the required info?

What is FinCEN Beneficial Ownership Information (BOI) Reporting?

Purpose: FinCEN’s Final Rule on Corporate Transparency Act (CTA): Implements beneficial ownership information (BOI) reporting to combat illicit financial activities.

Penalties for Non-Compliance: violations may be subject to civil penalties of up to $500 for each day that the violation continues and criminal penalties of up to two years imprisonment and a fine of up to $10,000.

Reporting Requirements: Companies must file reports identifying beneficial owners and company applicants, including their names, birthdates, addresses, and identification numbers.

Reporting Timeline: Effective from January 1, 2024. Existing companies have until January 1, 2025, to file.  New companies must file within 90 days of creation or registration.

Updates and Corrections: Companies must report changes or correct inaccuracies within 30 days of awareness.

Employer Identification Number (EIN)

What is an EIN?
A federal tax ID number, or an EIN, is a nine-digit number that identifies your company with the IRS. This nine-digit identifier is a bit like a Social Security number (SSN), but for your business.  It may also be referred to as a “TIN” on some documents.

Where can I find it?  (pick the easiest one)

1. Business Tax Return (top right on page 1)

2. 1099’s issued (“Payer’s TIN”)

2. Articles of formation/organization

3. Business loan application

4. EIN Confirmation Letter (CP 575)

5. Business Credit Report

6. Payroll documents (like payroll tax filings)

7. Business licenses / permits

8. Loan Documents

9. Call IRS IRS: 800-829-4933

Identify my company’s beneficial owners

Step 1: Identify individuals who exercise substantial control over the company. 

Step 2: Identify the types of ownership interests in your company and the individuals that hold those ownership interests.

Step 3: Calculate the percentage of ownership interests held directly or indirectly by individuals to identify individuals who own or control, directly or indirectly, at least 25 percent of the ownership interests of the company.

If any of the following apply to an individual, then they must be added to the BOI Report:

1. Does your company have a president, chief financial officer, general counsel, chief executive officer, or chief operating officer? 

 2. Does your company have any other officers that perform functions similar to those of a President, chief financial officer, general counsel, chief executive officer, or chief operating officer? Note: One individual may perform one or more functions for a company, or a company may not have an individual who performs any of these functions.

3. Does your company have a board of directors or similar body AND does any individual have the ability to appoint or remove a majority of that board or body? 

4. Does any individual have the ability to appoint or remove a senior officer of your company?

5. Does any individual direct, determine, or have substantial influence over important decisions** made by your company, including decisions regarding your company’s business, finances, or structure?**

*Important decisions include decisions about a reporting company’s business, finances, and structure. An individual that directs, determines, or has substantial influence over these important decisions exercises substantial control over a reporting company.

**Certain employees who might fit this description are nevertheless exempt from the beneficial owner definition. 

6. Are there any other individuals who have substantial control over your company in ways other than those identified in 1-5 above?

Acceptable forms of Identification

The only acceptable forms of identification are:

1. A non-expired U.S. driver’s license (including any driver’s licenses issued by a commonwealth, territory, or possession of the United States)

2. A non-expired identification document issued by a U.S. state or local government, or Indian Tribe

3. A non-expired passport issued by the U.S. government

4. A non-expired passport issued by a foreign government (only when an individual does not have one of the other three forms of identification listed above).

FinCEN identifiers

What is a FinCEN Identifier (FinCEN ID)?

A “FinCEN identifier” is a unique identifying number issued to an individual or an entity by the FinCEN, a bureau of the U.S. Department of the Treasury. 

What does a FinCEN ID do?

 If you have a FinCEN ID, for example, that FinCEN ID can be submitted on a BOIR instead of your name, date of birth, address, and unique identifying document number, jurisdiction, and image. This will make it easier to file BOIR updates in the future.