Description
What it is:
With the introduction of the Corporate Transparency Act (CTA), all companies are now required to report their beneficial ownership information (BOI) and keep their report up to date.
Why its needed:
• You are a newly formed company
• Your existing company needs to complete its first report before the filing deadline
• You need to update information that has previously been reported
• You need to correct a mistake on a previously filed report
• Your company has recently become exempt from reporting requirements
FAQs
What needs to be reported?
Company owners that own 25% or more of a company need to be reported on the BOI Report. Regardless of whether an owner owns a company directly or indirectly, if their ownership represents 25% or more, they must be listed on the BOI report. People who exercise “substantial control” over the company also need to be listed. These people do not need to have any ownership in the company but are decision-makers. This generally includes officers and directors but can also be senior management if they are able to make decisions that affect the running of the company.
What is a beneficial owner?
A beneficial owner is an individual who, whether directly or indirectly, exerts substantial authority over the reporting company, or holds or governs an ownership stake of at least 25% of the company.
What is the deadline that this information need to be reported?
Reporting deadlines are determined by when your company was formed. Companies created after January 1, 2024 must complete their initial report within 90 days of their creation. Companies created before January 1, 2024 must complete their initial report by the end of 2024.
When should it be updated?
1. If you have a change of information: Any information that has been submitted in a previous form needs to be changed if it is no longer correct. This includes information about the declared beneficial owners as well as all the information given about them, such as names, addresses, and ID numbers.
2. If an error occurs in the information: We all know that sometimes mistakes are made. If there is a typo or incorrect information, then a new report needs to be submitted.
In both cases the new report must be submitted within 30 days.
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