What is BOI (Beneficial Ownership Information)?
Beneficial Ownership Information (BOI) is the data that identifies the real individuals who have significant control or ownership of a company. This information typically includes the following:
- Name of the beneficial owner.
- Address of the beneficial owner.
- Date of birth of the beneficial owner.
- Ownership percentage or level of control the person holds, usually individuals who own or control at least 25% of the company’s equity or voting rights.
The purpose of collecting BOI is to enhance transparency and ensure compliance with regulations such as the Corporate Transparency Act (CTA). By identifying the true owners of a company, regulators can combat financial crimes like money laundering, fraud, and tax evasion.
Who must file a beneficial ownership information report?
Corporations and limited liability companies (LLCs) that meet specific criteria must file a Beneficial Ownership Information report with the Financial Crimes Enforcement Network (FinCEN). These reports are required to keep the ownership information up-to-date and ensure compliance with the law.
