BOI Report
Definition
A BOI (Beneficial Ownership Information) Report is a mandatory federal filing administered by FinCEN (the Financial Crimes Enforcement Network). It requires businesses to disclose the identities—including names, addresses, and copies of driver's licenses or passports—of the actual human beings who own or control the company.
Why it matters
Enacted under the Corporate Transparency Act in 2024, the BOI report is not optional. It is an anti-money laundering measure designed to stop criminals from hiding behind anonymous shell companies. If you form an LLC, you generally have 90 days (or 30 days, depending on the year of formation) to file this report online for free. The penalties for willfully failing to file are severe: up to $500 per day in civil fines and potential criminal charges.
Example
Lisa forms an LLC in January 2025. Because her LLC was created by filing a document with the secretary of state, she is required to file a BOI report. Within 90 days of formation, she goes to the FinCEN website, fills out her personal home address, uploads a photo of her passport, and submits the report. If she ever moves to a new house, she legally has 30 days to update her BOI report with her new address.