2024 Federal Requirement: The Corporate Transparency Act requires businesses to file FinCEN’s Beneficial Ownership Information Report. Get the eBook for Firms & Filers

How to Avoid 5 Costly Mistakes in FinCEN’s BOI System!

Firms, be cautious—directing your clients to FinCEN’s online direct filing might bring unexpected challenges in the beneficial ownership information reporting process.

Initial Beneficial Ownership Report Steps:

Starting the Beneficial Ownership Information Report, business owners may find the beginning clear. But the online form can be confusing, especially for those not familiar with the complex rules.

Friction Points in Beneficial Ownership Information Reporting:

  1. Request for Pins and ID: The form isn’t clear if this step is necessary, causing confusion.
  2. Reporting Company Name: It’s unclear whether to add the company suffix, leading to identification problems.
  3. Current US Address: No clear instructions to avoid specific addresses may result in having to file corrected reports and fines.
  4. Company Applicants: This optional step confuses users, and the warning message may stop them from completing necessary information.
  5. Beneficial Owner Section: Lack of explanations on terms like “beneficial owner” and confusion about reporting individuals with control.

Unexplained Fields When Filing a Beneficial Ownership Report:

Additionally, some parts of the form might be unclear, creating confusing for people filling out their beneficial ownership report.

  • Residential Address: Although it says to avoid PO boxes, the form lacks detailed explanations, leading to potential errors.
  • Identification Issuing Jurisdiction: Despite being straightforward, users may miss essential details without guidance.

Navigational Challenges in FinCEN BOI Direct Filing Platform:

In similar fashion, the form does not give clear instructions on adding multiple owners and understanding substantial control. This can lead users to submit incomplete reports, which may need fixing later on.

This lack of guidance can cause confusion and increase the chances of making mistakes. To make things better, it’s important to improve the form by giving clearer instructions and making it easier to use.

Recommendations for FinCEN’s BOIR Filing System:

  • Professional Assistance: Encourage business owners to seek professional help for accurate and compliant filing.
  • Improved Interface: FinCEN could enhance the online interface by providing contextual explanations for each form field.
  • Educational Resources: Develop concise guides or tooltips within the platform to educate users on regulatory nuances.
  • Warning Messages: Implement clearer warnings about potential pitfalls and the importance of thorough completion.

While FinCEN’s online filing is free, its form poses challenges for beneficial owners. By addressing these issues, both FinCEN and users can ensure a smoother filing experience, reducing the need for corrections and fines. However, the timeline for improvements on FinCEN’s website remains uncertain.

Your Secret to a Hassle-Free Beneficial Ownership Report

By comparison, FincenFetch stands out as the preferred method to simplify filing. Its easy interface and design eliminate confusion often found on FinCEN’s platform. 

FincenFetch guides users through each step, reducing the likelihood of errors. This not only saves time for owners but also minimizes the risk of facing complications down the line. 

Firms, take control of your clients’ smoother, hassle-free journey – explore how FincenFetch can bring clarity and efficiency to your filing process.

Your proactive steps start here; do not send your clients into the uncertainties of FinCEN’s direct filing. Instead, guide them toward a secure and easier path. To learn more, book a demo with our experts. Let’s get filing with a platform that ensures confident and error-free beneficial ownership reporting for your clients.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

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