A Step-by-Step Guide to Filling BOI Reporting of FinCEN

Beneficial Ownership Information (BOI) is a mandatory reporting conducted by the the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), which is used to collect data on individuals to identify who have a significant influence over a company, either by owning it directly or by having a level of control behind the scenes.

Each year, numerous small businesses are established in the United States as corporations, limited liability companies, or using other business structures. Unfortunately, these corporate forms can be misused by illicit individuals who employ shell companies and front businesses to conceal their true identities and route their illegal earnings through the U.S. financial system.

To prevent this, the Financial Crimes Enforcement Network (FinCEN) released new guidelines for reporting Beneficial Ownership Information (BOI), as outlined in the Corporate Transparency Act (CTA), on September 30, 2022.

Who is required to file BOI? In simple terms, any entity formed by submitting business formation documents to a secretary of state or a similar office will be affected. For more information you can read our blog post "Understanding Beneficial Ownership Information: Do I Need to File BOI?" and discover everything you need to know about the BOI.

FinCEN began accepting beneficial ownership information reports on January 1, 2024 and it is essential to be aware of specific deadlines for compliance and avoid any penalties. Please refer to our blog post for more details.
 
In this blog post, we will guide you on how to file the BOI reporting to FinCEN benchmark and provide an example to show you how to fill out the survey. We'II cover the following topics:

• Choosing BOIR submission method
• How to fill the form, and
• How to submit the report (we will describe to process for PDF filing, not online. But it is straightforward and similar)

However, please note that we will only cover the criteria listed below for filing BOIR:

• Assuming this is initial filing, and
• Considering PDF version filing/submission (the other option is online submission) 

Unsure whether BOIR requirement applies to you? We can help you to decide. Take your free assessment now.

IMPORTANT! This is a general guidance and does not replace specific BOIR instructions linked here. When in doubt, please refer to specific BOIR instructions. In this guide, we tried to summarize the requirements and steps for easier understanding with the specific screenshots. You are responsible to ensure that you meet the requirements and answer the questions as required by BOIR.

Or, If you need to file BOIR, We can complete and file BOIR for you.

Let's start.

1) Choosing Your BOIR Submission Method

You have two options for submitting the BOIR: as a PDF or online through a web browser. The main difference between filing as a PDF and online is you can work offline and reuse PDF when any updates needed.

In this blog post, we will show describe to process for PDF.

1. To prepare and file a PDF BOIR, you need to have Adobe Reader. If you don't have, you need to do download it.
2. Then, pls go to FinCEN website and choose your filing method.
3. Click the "Prepare BOIR" under the "File PDF BOIR" to download the BOIR form.

2) Filing the Report

Now you have your PDF BOIR on your devide and please find the downloaded BOIR.pdf file on your device, and then open it using Adobe Reader. We recommend using the latest version to avoid any issues during submission.

There are 4 different navigation tabs at the top which are home, reporting company, company applicants and beneficial owners and you must provide information in every field marked with the * symbol. Otherwise, you are not able to submit the form.

• Home

To begin, go to the "Filing Information" section located under the Home tab. From there, select the type of filing you intend to make, which includes options like the initial report, correcting a prior report, updating a prior report, or reporting a newly exempt entity.

1. For the purpose of this guide, we assume it's your first time filing, so let's choose the "initial report" option.
2. When you select the "initial report" option, no additional information is necessary in this section.

IMPORTANT: BOIR is not a one-time reporting. After submitting your initial report, should there be any changes in your company's information or beneficial ownership, you must file a new report with FinCEN within 30 days of the changes taking place.

If you prefer not to handle these regular filings yourself, you have the option to collaborate with our services.

• Reporting Company Information

In this part you need to provide information about the reporting company. Remember, if your company is considered as a "reporting company", then you are required to file BOI. For more details please check out our blog post. And if you are still unsure whether you need to file the BOI, you can benefit our BOI assessment to determine this.

1. Part 3: Request to receive FinCEN Identifier (FinCEN ID):  A FinCEN ID is a unique identification number granted to individuals by FinCEN. While it's not obligatory to acquire a FinCEN ID, obtaining one can streamline the reporting procedure.
   If you want to get the ID, check the box and it will be included in the confirmation details provided to the filer once the BOIR has been accepted. 
2. Part 4: Foreign pooled investment vehicle: If the Reporting Company is a foreign pooled investment vehicle, check the box. In the case of a foreign pooled investment vehicle reporting company, it is only necessary to report a single beneficial owner who wields substantial control over the entity and do not include any information related to company applicants.
3. Part 5: Reporting Company legal name: Provide the complete legal name of the reporting company as it appears on the articles of incorporation or any other documents that established or registered the entity.
4. Part 7: Tax identification type: There are 3 available options. Choose "EIN" if the reporting company possesses a U.S. Employer Identification Number (EIN). Opt for "SSN-ITIN" if the reporting company utilizes a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) as its tax identification number. Select "Foreign" if the reporting company holds a tax identification number issued by a foreign jurisdiction and does not possess a U.S. tax identification number. 
   If you select "foreign, you also need to enter country/jurisdiction that issued the foreign tax identification number.
5. Part 8: Tax identification number: Basically, enter the tax identification number for the reporting company based on your tax identification type choice.
6. Part 10: Country/Jurisdiction of information: From the dropdown menu, choose the "Country/Jurisdiction of Formation. If you select "United States, you will see fields for "State of Formation" and "Tribal Jurisdiction of Formation." At least one of these fields must be filled out. If you choose a "U.S. Territory," the "State of Formation" field will appear, and it will be automatically filled with the selected U.S. Territory. If you opt for a "Foreign Country," you will find fields for "State of First Registration" and "Tribal Jurisdiction of First Registration," and at least one of these fields must be completed.
7. Part 11-15: Current U.S. Address: Provide the reporting company's full and current street address details. If the reporting company maintains a principal place of business within the United States or a U.S. Territory, please use that address as the street address. If the reporting company has no principal place of business in the U.S.:
   - You may use the primary location where it conducts business in the U.S., such as a foreign reporting company’s U.S. headquarters, or
   - If it conducts business at multiple U.S. locations, you may use the address of any location where it receives important correspondence, or,
   - If it has no U.S. business locations, you may use the U.S. address of the person designated to accept legal service on its behalf, commonly known as the registered agent.
   

We can complete and file BOIR for you.

• Company Applicant Information

If you're unsure about what a company applicant is, you can refer to our blog post for clarification.

If a reporting company was created or registered before January 1, 2024, the reporting company only needs to provide information about itself and its beneficial owners. There's no need to provide details about its company applicants.

1. Part 16: Existing Reporting Company:
   
   
   • If your company is created of registered before January 1, 2024, check the box 16 and skip the company applicants part since it is no longer required.
   • If your company is created of registered on or after January 1, 2024, do not click the box and complete the company applicants part.

   Let's assume you need to complete company applicants.

2. Part 18: FinCEN ID: You have the option to input the FinCEN ID for a company applicant instead of filling out the details in fields 19 through 33. The FinCEN ID should be entered as a single text string. However, if a FinCEN ID for the company applicant is not available, then the required information about the company applicant must be entered in fields 19 through 33. It is OK not to have a FinCEN ID.
3. Part 19 and 20: Individuals first and last name: Enter the company applicant’s legal first and last name.
4. Part 21: Date of birth: Enter the company applicant's date of birth in the MM/DD/YYYY format.
5. Part 24-29: Current address: Specify the address type as either "Business address" or "Residential address" for the company applicant.for a company applicant who forms or registers entities in the course of their business, report the street address of such business. In all other cases, the individual's residential street address should be reported. 
6. Part 30: Identifying document type: Choose the type of identifying document for the company applicant from the following options: a non-expired State-issued driver's license, a non-expired State/local/Tribe-issued identification document specifically issued for individual identification purposes, a non-expired U.S. passport, or, if the company applicant does not possess any of these identifying documents, a non-expired foreign passport.
7. Part 31: Identifying document number: Basically, enter the tax document number from the company applicant’s identifying document.
8. Part 32:  Identifying document issuing jurisdiction: Input the country or jurisdiction that issued the identifying document for the company applicant.
9. Part 33: Identifying document image: Click the "Add Attachment" button to attach an image of ID document of the company applicant. The image should present a full, well-defined, and legible view of the page or side of the identifying document, including the unique identifying number and other relevant identifying information. You may upload only 1 attachment per company applicant. Supported formats are JPG/JPEG, PNG, and PDF and maximum file size can be 4MB. 

IMPORTANT! Reporting companies are able to report up to 2 company applicants. If you need to report 2 company applicants, click  the "+" button at the top of the " Company Applicant Information" page to add an additional company applicants.

• Beneficial Owners

If you're unsure about what a beneficial owner is, you can refer to our blog post for clarification.

1. Part 35: Parent/Guardian information instead minor child: If the beneficial owner of the reporting company is a minor child, you can mark this box and proceed to fill out Part III with details regarding a parent or legal guardian of the minor child.
2. Part 36: FinCEN ID: You have the option to input the FinCEN ID for a company applicant instead of filling out the details in fields 37 through 51. The FinCEN ID should be entered as a single text string. However, if a FinCEN ID for the company applicant is not available, then the required information about the company applicant must be entered in fields 37 through 51.
3. Part 37: Exempt entity: Select the box if the beneficial owner holds its ownership interest in the reporting company exclusively through one or more exempt entities, and the name of that exempt entity or entities are being reported in lieu of the beneficial owner’s information.
   If checked, provide the legal name of the exempt entity in field 38.
4. Part 38 and 39: Individuals first and last name or entity's legal name: Enter the beneficial owners legal first and last name or the legal name of the exempt entity. An entity's legal name should match the name stated in the articles of incorporation or any other document that established or registered the entity. Do not use abbreviations unless such an abbreviation is an official part of the legal name.
5. Part 42: Date of birth: Enter the beneficial owner's date of birth in the MM/DD/YYYY format.
6. Part 43-47: Residential address: Enter the beneficial owner’s residential address information including street, the city, country or jurisdiction, State, and ZIP code or foreign postal code.
7. Part 48: Identifying document type: Choose the type of identifying document for the beneficial owner from the following options: a non-expired State-issued driver's license, a non-expired State/local/Tribe-issued identification document specifically issued for individual identification purposes, a non-expired U.S. passport, or, if the company applicant does not possess any of these identifying documents, a non-expired foreign passport.
8. Part 49: Identifying document number: Basically, enter the tax document number from the beneficial owner's identifying document.
9. Part 50: Identifying document issuing jurisdiction: Input the country or jurisdiction that issued the identifying document for the beneficial owner.
10. Part 51: Identifying document image: Click the "Add Attachment" button to attach an image of ID document of the beneficial owner. The image should present a full, well-defined, and legible view of the page or side of the identifying document, including the unique identifying number and other relevant identifying information. You may upload only 1 attachment per beneficial owner. Supported formats are JPG/JPEG, PNG, and PDF and maximum file size can be 4MB.  

IMPORTANT! If you have more than 1 beneficial owner, click the "+" button at the top of the "Beneficial Owner Information" page to add an additional beneficial owner. BOIR limits the number of beneficial owners to 99. 

3) Submit the Report

So, you are on the final step. To submit the BOIR, you need to go to "Home" page.

1. Click on the "Validate" button to check that all the mandatory fields in the system have been properly filled out. If any errors exist, a message will appear pinpointing the specific field that requires attention. Once the PDF BOIR passes the validation process with zero errors, it is ready to be finalized.
2. Click on the "Finalize" button to secure all fields, preventing any further updates to the PDF BOIR. The "Finalize" button will be replaced by an "Edit Report" button in case you need to reenable the fields for editing.
3. Then, click on the "Save" button to enable "Ready to File" button and save your report on your device.
4. Once the PDF BOIR has been finalized and saved, the "Ready to File" button becomes active. Simply click the "Ready To File" button to initiate the submission process. This action will automatically open your default web browser and direct it to the PDF BOIR submission webpage.
5. A warning pop-up will appear. You need to click the "Agree" button.
6. As last step, you will be directed to the page "Submit the PDF Beneficial Ownership Information Report (BOIR). You need to complete the all requested information, select the I certified checkbox, attach the finalized BOIR and select the hCaptcha text box I am human.
   
   
7. Click the "Submit BOIR".
8. After submission, you will see submission processing. Once the submission completed successfully, you will se the "Submission Status Confirmation" page. If the submission is rejected, you need to resolve errors and submit the report again.
9. DO NOT FORGET to download transcript. Choose the "Download Transcript" button to retrieve a PDF copy of the transcript. This document contains a copy of the confirmation page details and the report data presented in transcript format. It functions as a receipt for your submission. Keep it in your records.

Congrats! It is completed!

IMPORTANT: BOIR is not a one-time reporting. After submitting your initial report, should there be any changes in your company's information or beneficial ownership, you must file a new report with FinCEN within 30 days of the changes taking place.

Stay Compliant with Tukel Accounting

Navigating the Beneficial Ownership Information (BOI) reporting can be challenging, especially for business owners new to such regulations.Understanding and complying with BOI requirements is crucial, but it doesn't have to be a daunting process. If you're looking for assistance with BOI reporting, our team is here to help.

Our services extend beyond BOI reporting to support your U.S. company in bookkeeping, accounting, taxes, payroll, and more. We offer a range of flexible pricing plans, designed to provide effective solutions for managing your U.S. business efficiently. Starting with us is straightforward. Enhance your business's success by arranging a discovery call with our sales team at Tukel Accounting to discuss your specific needs today. Let us help you navigate the BOI reporting process and keep your business on track.

Disclaimer:

_{This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Tukel Inc. is not responsible for updating or revising any information presented herein.You can refer to the FinCEN site for the latest updates and rules. Accordingly, the information provided should not be relied upon as a substitute for independent research. Tukel Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.}