Insight into Beneficial Ownership Data for Writers: A Comprehensive Guide
Foreign entities registered to do business in the United States have a crucial deadline approaching for Beneficial Ownership Information (BOI) reporting.
The Corporate Transparency Act (CTA), which became law on January 1, 2021, requires foreign entities to report their beneficial ownership information. The deadline for this reporting is April 25, 2025.
The BOI report is a 4-page document that contains 51 questions and a request to upload an identifying document. It can be filed via PDF or an online form on the BOI E-Filing website.
Foreign entities registered before the interim final rule must file their BOI reports within 30 days of the rule’s publication, while entities registering afterward have 30 days from their registration effective date to file.
It is important to note that as of mid-2025, domestic U.S. entities are exempt from BOI reporting. This update follows the February-March 2025 policy changes where enforcement for domestic businesses was suspended, and FinCEN focused on foreign reporting companies.
There is no filing fee for BOI reporting, and the process can be completed in the time it takes to finish a cup of coffee. There is no need for an attorney or certified accountant for BOI reporting.
If you "willfully" ignore the BOI reporting rules, you could face a daily fine of $500 (or $591 as of this writing). Violating the BOI reporting requirements could lead to up to two years of federal prison and a $10,000 fine.
To help foreign entities navigate the reporting process, FinCEN has provided a 5-minute video guide. Additionally, their FAQ section has more information to confirm specific situations regarding BOI reporting. It is optional to create a FinCEN ID for simplifying the reporting process.
Given the approaching deadline, foreign entities registered to do business in the U.S. are encouraged to familiarise themselves with the BOI reporting requirements and complete their reports promptly. For the most up-to-date information, it is advisable to consult the FinCEN portal or the latest official releases.
- foreign entities registered to do business in the United States should submit their Beneficial Ownership Information (BOI) by the approaching deadline on April 25, 2025, as mandated by the Corporate Transparency Act (CTA).
- The BOI report, which includes 51 questions, an identifying document, and can be filed via PDF or online form, is a crucial requirement for foreign entities conducting business in the United States, with no filing fee and no need for an attorney or certified accountant.
