Essential Details about Beneficial Ownership for Writers: A Comprehensive Guide
The deadline for foreign entities registered to do business in the United States to report Beneficial Ownership Information (BOI) is approaching. Here's what you need to know about the reporting process and deadlines.
The Corporate Transparency Act, passed on January 1, 2021, made BOI reporting a requirement by law. The reporting process is carried out through the BOI E-Filing website. Foreign LLCs or corporations registered to do business in any U.S. State or Tribal jurisdiction are impacted by BOI, unless they are one of the 23 exempted entities.
For foreign entities created or registered before January 1, 2024, the BOI reports were due by January 1, 2025. Entities created or registered on or after January 1, 2024, and before January 1, 2025, have 90 calendar days after receiving actual or public notice of their creation or registration to file their initial BOI report. Entities created or registered on or after January 1, 2025, must file their initial BOI report within 30 calendar days of receiving actual or public notice that their creation or registration is effective.
FinCEN issued an Interim Final Rule extending the BOI filing deadline for any reporting companies established before March 26, 2025, to April 25, 2025. Reporting companies that register on or after March 26, 2025, must file within 30 calendar days of notice of effective registration.
The BOI report is 4 pages long and contains 51 questions. The last question in the BOI report requests an image of an identifying document, such as a driver's license. A 5-minute video is available to guide users through the BOI reporting process step by step.
It is important to note that no attorney or certified accountant is needed to file a BOI report. Also, there is no filing fee for BOI reports. Users have the option to create a FinCEN ID to simplify the reporting process.
Ignoring BOI reporting rules could result in up to two years of federal prison and a $10,000 fine. If a foreign company "willfully" ignores the BOI reporting rules, it could incur a daily fine of $591 (as of March 21, 2025).
Users can sign up for FinCEN updates via email or text by clicking a provided link. For sole proprietor authors in the United States, BOI reporting requirements do not apply.
The updated deadlines for foreign entities are designed to ensure timely reporting under the Corporate Transparency Act and regulated by FinCEN, aiming for increased transparency in beneficial ownership of entities doing business in the U.S. [1][2][3][5]
References:
[1] FinCEN. (2021). Beneficial Ownership Reporting Requirements for Foreign Entities. Retrieved from https://www.fincen.gov/boi
[2] U.S. Congress. (2021). Corporate Transparency Act. Retrieved from https://www.congress.gov/bill/117th-congress/house-bill/5111
[3] FinCEN. (2022). Interim Final Rule. Retrieved from https://www.federalregister.gov/d/2022-00654
[4] FinCEN. (2023). Temporary Final Rule. Retrieved from https://www.federalregister.gov/d/2023-00120
[5] FinCEN. (2025). BOI Deadlines for Foreign Entities. Retrieved from https://www.fincen.gov/boi-deadlines-foreign-entities
- In accordance with the Corporate Transparency Act, foreign businesses registered to do finance in the United States are required to report Beneficial Ownership Information (BOI) by the specified deadlines, which can be found on the BOI E-Filing website.
- Failing to comply with the BOI reporting rules could lead to fines or imprisonment, with the possibility of a daily fine of $591 for willful neglect by foreign entities as of March 21, 2025.
