If you have an LLC or are in the process of forming one, complying with current regulations can be a challenge, especially when there are mandatory reports and little clarity about how to file them.
In this regard, the BOI report (Beneficial Ownership Information) is essential to keep your business compliant and avoid penalties. But what does it really involve, and who has to file it?
Below, we explain step by step what you need to comply with this regulation without wasting time or risking fines.
What is the FinCEN BOI report?
The FinCEN BOI report (Beneficial Ownership Information) is a mandatory filing that companies must submit to the Financial Crimes Enforcement Network (FinCEN), the U.S. Department of the Treasury authority responsible for fighting fraud and money laundering.
The purpose of this report is to identify a company's beneficial owners, that is, the people who own or control a business entity in the U.S.
In force since the Corporate Transparency Act (CTA) of 2021, this regulation requires reporting the ownership of LLCs and other similar entities, in order to reduce the use of companies with opaque structures for illicit activities.
Who can access the information in my report?
For your peace of mind, you should know that the information in the BOI report is not public; access is limited to authorized entities to prevent misuse of sensitive data. FinCEN shares this report only with U.S. government agencies and with financial institutions that must comply with strict confidentiality rules.
For example:
- U.S. government agencies such as the IRS (Internal Revenue Service) and the FBI.
- Local and state authorities.
- Financial institutions, for audits and verification of business ownership.
This measure ensures that an LLC's ownership information is only available when necessary for investigations into fraud, money laundering or other financial crimes.
Who must file the BOI?
The BOI report is mandatory for all business entities in the United States, such as:
- LLCs.
- Corporations.
- Some foreign companies that operate in the country.
- Partnerships and trusts.
*As long as they meet the ownership and substantial control criteria.
This requirement applies especially to companies whose ownership structure includes beneficial owners holding at least a 25% stake or having significant control over the entity's decisions.
Filing the BOI allows FinCEN to monitor ownership in order to reduce the risk of illicit activities and ensure business transparency is in line with U.S. regulations.
Argentina: Will AFIP have access to my BOI report?
For foreign entities such as AFIP in Argentina to access the information in the BOI report, they must submit requests through U.S. federal intermediaries, since they have no direct access to the FinCEN database.
This access takes place under an existing agreement, such as the Foreign Account Tax Compliance Act (FATCA), which facilitates the exchange of financial information between countries. If there is no agreement, FinCEN evaluates whether to provide the data based on U.S. interests.
That said, this is usually requested only when there are suspicions of tax evasion or other financial crimes. If you properly report your LLC's income, you have nothing to worry about!
When must the BOI be filed?
The BOI report must be filed within the deadlines set by FinCEN, which usually depend on when the entity in question was formed or registered. New companies generally must meet this requirement within 30 days of their formation or registration in the U.S., while existing entities have a longer period to adapt to this regulation.
The purpose of these deadlines is to allow both new and established companies to update and submit their ownership information in a timely manner, contributing to greater transparency in the U.S. financial system.
And keep in mind: meeting the stated deadlines avoids penalties and keeps companies in compliance with the Corporate Transparency Act (CTA) of 2021.
What information does the BOI include?
The BOI report must include detailed information about the company's beneficial owners, that is, the people who own or control a significant part of it. The essential data to report includes:
- Full name of each beneficial owner.
- Date of birth.
- Current address.
- A valid identification number, such as a passport or driver's license.
The data may vary depending on the jurisdiction where the company is registered, although these are generally the main details requested.
File your BOI report with Business en USA
As you can see, the BOI report is a fundamental step to keep your LLC compliant with U.S. regulations and ensure transparency in your company's ownership. With the right guidance, the process can be simple and effective, letting you focus on growing your business without worrying about paperwork and ensuring it complies with all transparency regulations, thus avoiding legal risks.
Interested in forming your LLC safely and simply? Request more information and find out how we can help you at every step of the process.
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Written by
Ignacio Navarro
Ignacio Navarro is a Certified Public Accountant, founder of Start Companies and a specialist in U.S. companies for entrepreneurs, freelancers and digital businesses in Latin America. With training in international taxation and studies at UCEMA, he advises non-resident clients on forming and maintaining LLCs, opening bank accounts, invoicing, accounting and taxes. His experience combines tax strategy, compliance and practical vision for operating in the U.S. in a simple, organized and professional way.
