Beneficial Ownership Information Report
A Beneficial Ownership Information (BOI) report is a mandatory national filing that’s part of the Corporate Transparency Act (CTA). Effective January 1, 2024, most corporations and LLCs in the U.S. are required to report ownership information (names, addresses, SSN and photo ID) to the Financial Crimes Enforcement Network (FinCEN). These filings are free and confidential—and full of confusing legal jargon.
In this guide, we’ll go over everything you need to know to file your BOI report correctly and on time.
The Texan Guide to Filing A BOI Report
Filing the report itself isn’t difficult, but knowing what to include can be. Here’s what you’ll need to do:
1. Gather Company Information
You’ll need to provide the following pieces of information for your company, as well as your company’s beneficial owner(s) and company applicant(s).
|Beneficial Owner / Company Applicant||Company Information|
|Full legal name||Full legal name (including any DBA names)|
|Residential address||Principal address|
|Date of birth||Jurisdiction of formation|
|Valid photo ID||Tax ID (EIN, SSN, or ITIN)|
What is a beneficial owner?
A beneficial owner is anyone who has financial control (at least 25%) or significant influence over how your company is run. For corporations this might include directors and board members, and for LLCs this might include members and/or managers.
What is a company applicant?
This is the person responsible for forming your company, whether they filed formation papers themselves or directed someone else to do it. If this is the same person, you can include information for one company applicant. But if these are different people, you must provide information for two company applicants.
2. Visit the FinCEN website
Your BOI report must be filed online with the Financial Crimes Enforcement Network.
Will the information in my BOI report be public online?
No. The information you provide will NOT be released to the public.
3. Complete the Filing
After your BOI report is filed, you’ll receive a confirmation of receipt via email.
When is my BOI report due?
The due date for your BOI report depends on when your company was formed:
- Before January 1, 2024: You have until January 1, 2025.*
- During the 2024 calendar year: You must file your report within 90 days of formation.
- After January 1, 2025: You must file your report within 30 days of formation.
*You also do not need to include information for a company applicant.
FAQ: BOI Report for Texas Companies
What is the CTA?
The Corporate Transparency Act was passed in 2021 in order to crackdown on financial crimes. As part of the CTA, the federal government—through an agency called FinCEN—collects ownership information for the vast majority of companies registered at the state level. This is meant to make it more difficult for bad actors to conceal illicit business practices.
Who must file a beneficial ownership report?
While there are some exceptions, most businesses registered with the Texas Secretary of State are required to file a BOI report, including domestic and foreign Texas Corporations and Texas LLCs. Sole proprietorships and general partnerships do not need to file a BOI report.
Who is exempt from filing a BOI report?
There are 23 types of entities that are exempt from filing a BOI report (see BOI Small Entity Compliance Guide, p. 4). However, in order to be categorized as exempt, a company must already have transparent filing practices. This means exempt entities are probably in a highly regulated industry (like finance), or are publicly traded corporations that already report ownership information.
Do I have to file a BOI report every year?
No, this is a one-time filing. However, if any of the information you included in your report changes, you’ll have to file an updated BOI report within 30 days of when that change was made. For example, you’ll probably have to file an updated BOI report if your LLC gains a new member, your corporation changes its principal address, or someone with at least 25% ownership interest in your company changes their legal name. These changes can be made online through FinCEN.
How much does a Beneficial Ownership Information report cost?
It’s free to file your BOI report online through FinCEN. However, if you don’t want to add this filing to the growing list of things you need to keep track of for your business, you can hire us to file it for you for just $9.