What is Beneficial Ownership Information?
Beneficial Ownership Information (BOI) is the data that identifies the real individuals who directly or indirectly own or control a company. This information includes the name, address, date of birth, and the ownership percentage, which is typically 25% or more of the company’s equity or voting rights. BOI is critical for ensuring transparency and regulatory compliance, particularly under laws like the Corporate Transparency Act (CTA).
Companies are required to report this information to the Financial Crimes Enforcement Network (FinCEN) to help prevent financial crimes such as money laundering, tax evasion, and fraud. Beneficial owners are individuals who hold significant influence over the company’s operations or financial interests.
Who needs to report beneficial ownership information?
Corporations and limited liability companies (LLCs), along with other similar entities, are generally required to report Beneficial Ownership Information. These companies must disclose the details of any individual who owns or controls at least 25% of the entity or who exercises significant control, ensuring compliance with the CTA.
