What is a Legal Entity?
A Legal Entity refers to any organization that is established and recognized by law, including corporations, limited liability companies (LLCs), and other similar entities. These entities have certain legal rights and responsibilities, including the obligation to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA). The CTA mandates that legal entities provide details about individuals who have significant control or ownership over the entity.
Legal entities subject to BOI reporting must submit personal information about beneficial owners, including names, addresses, dates of birth, and identifying numbers, to FinCEN. This requirement is intended to promote corporate transparency and prevent the misuse of legal entities for financial crimes, such as money laundering and tax evasion.
Certain types of legal entities, such as publicly traded companies or regulated financial institutions, may be exempt from BOI reporting due to their existing regulatory oversight.