File your Beneficial Ownership Information Report with us

With Ahad&Co, you'll receive timely notifications when it’s time to file your report, based on your business type and formation date. We’ll gather the necessary information to prepare an accurate report that includes details about the individuals who own or control your business, known as beneficial owners, ensuring compliance with federal reporting requirements.

We’ll then file the report on your behalf with the Financial Crimes Enforcement Network (FinCEN) before the deadline. You’ll receive confirmation of submission, giving you peace of mind that you've met your compliance obligations.

Your filing deadline depends on your date of formation, and we can help you determine the specific timeframe. We also offer reminders to keep you on track as your deadline approaches.

For most existing companies—those formed before January 1, 2024—the deadline to file is January 1, 2025. Newly established businesses formed on or after January 1, 2024, must file within 90 calendar days after receiving either actual or public notice that their formation is official. If any information in your report changes, you'll have 30 days to submit an updated report.

Meeting this requirement is essential to avoid severe criminal and civil penalties, which can include imprisonment for up to two years, fines up to $10,000, and/or fines of up to $500 per day.

A beneficial owner is someone who directly or indirectly: (1) owns or controls at least 25% of your company’s ownership interests, or (2) exercises substantial control over your business. If you're uncertain, you can consult with an attorney from our legal network for guidance.

Examples of beneficial owners with substantial control include:

- A key decision-maker for the reporting company
- A senior officer, such as a president, CEO, CFO, general counsel, COO, or any other officer with similar responsibilities
- An individual with the authority to appoint or remove officers or directors (or a similar governing body) of the company

Additionally, if you officially formed your business on or after January 1, 2024, you must also submit information about the individuals who formed the business (known as "company applicants"), even if they do not qualify as beneficial owners.

Corporations and limited liability companies (LLCs) that qualify as reporting companies must file a Beneficial Ownership Information Report (BOIR). This involves reporting identifying information about the individuals who own or control the business to the U.S. government. Non-compliance could result in significant civil and criminal penalties.

This new requirement affects most business entities, known as reporting companies, unless an exception applies.

Under the Corporate Transparency Act, this rule requires the identification of individuals who benefit from a legal entity.

The legislation aims to enhance transparency around business ownership structures to help the federal government combat financial crimes and fraud, including money laundering, corruption, human trafficking, drug trafficking, tax fraud, and fraud against employees, customers, and other businesses.

The Corporate Transparency Act changes the reporting requirements for beneficial ownership information for businesses operating in the United States. It mandates that businesses identify and document any person who holds a 25% or greater ownership interest or exercises substantial control over the company.

According to the new rule, most reporting companies must file information about each beneficial owner with the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). FinCEN maintains a database that stores this information, documenting each beneficial owner reported by a company.

A beneficial owner must provide their legal name, date of birth, address, and an image of an acceptable identification document, such as a passport or driver's license. Additionally, they must include the issuing jurisdiction and the document's ID number.

FinCEN has identified 23 types of exempt business entities that do not qualify as reporting companies under the reporting requirement. These exempt entities include:

1. Securities reporting issuer
2. Governmental authority
3. Bank
4. Credit union
5. Depository institution holding company
6. Money services business
7. Broker or dealer in securities
8. Securities exchange or clearing agency
9. Other Exchange Act registered entity
10. Investment company or investment adviser
11. Venture capital fund adviser
12. Insurance company
13. State-licensed insurance producer
14. Commodity Exchange Act registered entity
15. Accounting firm
16. Public utility
17. Financial market utility
18. Pooled investment vehicle
19. Tax-exempt entities
20. Entity assisting a tax-exempt entity
21. Large operating company
22. Subsidiary of certain exempt entities
23. Inactive entity

Companies qualify as tax-exempt entities if they meet any of the following criteria:

- The IRS recognizes them as exempt under section 501(c) of the Internal Revenue Code, which includes many nonprofit organizations.
- They lost their tax-exempt status under the code less than 180 days prior.
- They are political organizations as defined under section 527(a) of the code.
- They are trusts as defined under section 4947(a) of the code.

The agency defines a large operating company as meeting all of the following criteria:

- It is subject to a federal regulatory regime.
- It employs more than 20 people full-time in the U.S.
- It reported over $5 million in gross receipts or sales on a prior year’s tax return filed with the IRS, excluding foreign receipts.
- It has a physical operating presence in the U.S.
- It is owned by an entity already exempt under the Corporate Transparency Act.
- It is otherwise designated as exempt by the Secretary of the Treasury and the U.S. Attorney General.

Yes, I can rewrite them. Here’s the revised version:

---

A reporting company must be an active business; inactive entities are not required to report. FinCEN defines an inactive entity as meeting all of the following criteria:

- It was established before January 1, 2020.
- It is not actively conducting business.
- It is not owned by a foreign person, resident, domestic partnership, corporation, or other estate or trust.
- It has not engaged in transactions exceeding $1,000 in the past year.
- It holds no assets, including ownership of other companies, either in the U.S. or abroad.

The Act exempts the following individuals from the definition of beneficial owner:

- Minors
- Individuals serving as nominees, intermediaries, custodians, or agents on behalf of others
- Employees who are not senior officers and whose interest or control comes solely from their employment
- Individuals whose interest in the reporting company arises only from inheritance rights
- Beneficiaries of contingent trusts
- Creditors whose only interest is in recovering business debts

Members or owners of a limited liability company (LLC) are typically classified as beneficial owners under the rule. This designation makes these LLCs reporting companies that must file the new report with the federal agency, including basic contact information about the company and its owners.

This requirement applies to both single-member and multi-member LLCs, all of which are considered reporting companies and must therefore provide beneficial ownership information in the BOIR.

Any changes to the owners or controlling members of a business, or their identifying information, necessitate an updated beneficial ownership information report (BOIR). For instance, if a controlling member who was previously a minor reaches the age of majority, or if a company obtains tax-exempt status, an updated BOIR is required.

Additionally, if the initially reported information is incorrect or if there are certain amendments, a revised BOIR must be filed. Businesses have 30 days from the date of the change or amendment to submit the updated BOIR.

The Corporate Transparency Act is a significant piece of legislation affecting small business owners. The latest requirement, the Beneficial Ownership Information Reporting Rule, takes effect on January 1, 2024, and requires most limited liability companies and corporations to file a beneficial owner report.

For small business owners focused on managing and growing their operations, navigating this new law can be challenging and time-consuming. Non-compliance carries serious penalties, including imprisonment for up to two years, fines of up to $10,000, and/or daily fines of up to $591.

Ahad&Co offers a solution to simplify this process and ensure compliance with federal law.

With Ahad&Co, you can easily meet this requirement in three simple steps, minimizing risk while saving time and money. Start by answering a few straightforward questions about the individuals who own or control your business to create a personalized and accurate report.

We’ll then prepare a custom report that meets the reporting requirements and file it directly with FinCEN for you. After submission, we’ll provide you with confirmation that your report has been filed.